Supply and Demand is at work in real estate like normal. The market has turned and there are fewer homes on the market than what buyers are demanding.
In a balanced market we like to see a six month supply of homes. This means that if no other homes came on the market, all of the current inventory would be sold in six months. If the number of homes falls below the six month supply, we say we have a sellers market and if the supply is above the six month supply, we have a buyer market.
The supply amount differs between location within the city and the price point. Properties in our market below $200,000 are currently experiencing a drastic seller’s market with many properties on the market a very short time. And since there are more buyers than sellers the prices have been increasing. In an effort to get a home, buyers have to compete with other buyers in multiple offers. Multiple offers tend to drive the market price upward.
Why do we have so many more buyers than sellers? In my professional opinion it is because buyers believe the market is improving and want to buy before prices increase dramatically or interest rates increase. In addition, we have several people who decided to rent after last years storm, their leases are coming do and they may be ready to reenter the market. Rents have been going up and it makes more sense to buy than pay high rent. In addition, unemployment is low and jobs have been moving into the metroplex which increases demand for housing.
As sellers become aware of the market turn, more sellers will enter the market. With more homes for sale, the market will even out somewhat over time. However if you are ready to sell your property, the time is now. Take advantage of the buyer demand before more sellers enter the market and get your home sold fast.
If you have questions about selling your home, please call me today at 405-213-2992 or visit my website at www.sandiwalker.com.