The October numbers just came out and we had the highest number of listings since last year at this time. Even with listing inventory increasing each month, the market appears to be stuck in a seller’s market with less than 3 months of homes for sale. This means if no new listings came on the market, theoretically we would sell all of the homes in exactly 2.84 months. Are we in a buyer’s market, seller’s market, balanced? And where are we headed?
This year has been pretty steady all in all. On paper, the market appears to be in a seller’s market with such low months of inventory all year long. However, if you look at little deeper, the market is very mixed and largely depends on the sales price range.
The biggest driving factor in the “seller’s market” rhetoric is that majority of the single family homes sold this year (almost 58%) fell between a very small range ($200,000 – $399,999). The active listings in this price range make up about 40% of the available homes for sale. Every month when new listings hit the market, buyers shopping in that price range are already limited to what is available.
This means that sellers in this price range should have no trouble selling as long as the home is in good condition, priced right, and a strong agent that is marketing the home. If you find that you fall into this bracket and are having difficultly selling, the answer of how to sell is in those 3 reasons. You either need to lower the price, make improvements, or get a new agent.
Alternatively homes between $400,000-$599,999, just one bracket higher, make up about 10% of the homes sales. While the active listings in this price range sit at about 16% of all the listings for sale. If you are at a higher price range you will find that more competitive pricing is necessary as less buyers are shopping for a home in this range.
Go even a little higher and you’ll find a completely different market very weighted to buyers with 9-10 months of supply. Check out our post about opportunity for luxury buyers.
As we head into a new year, it is likely that the listings will continue to grow. Although this is common, we want to monitor how the sales line up in relation to the listing inventory. That supply and demand is what determines if you will have an easy time selling or not. Take action quickly to avoid being stuck in the new year as more listings come on the market in the new year. Give us a call to learn more about the market in your specific neighborhood 407-494-2820 or email email@example.com today!