What You Need to Know About Real Estate's Inventory Shortage
We may have started a new decade, but last year’s biggest real estate concern is still singing the same tune.
Inventory is at a near-historic low, while demand for homes continues to grow.
This can be frustrating for eager buyers and bring hesitancy to those looking to sell soon.
It’s up to you to explain to your prospects, leads and clients WHY this means they shouldn’t wait to sell. Here’s how.
A normal market’s inventory sits at 6 months. We’re currently at 3.7 months nationally and that number could drop lower. Locally in the San Fernando Valley and GGreater Los Angeles area we are just slightly under 2 months inventory, making for fierce bidding wars in the first time buyer market.
What does this mean? It means that there aren’t enough homes to keep up with the demand of buyers. This is, in big part, due to millennials finally wanting to become first-time homebuyers.
There’s also been a shift in when people are buying homes. The myth that the spring market is the best seller’s market is busted.
For the past five years, buyers have been coming out earlier and earlier because of increased demand. Essentially, there is no such thing as a “buyer’s season” anymore, and those who think so could face a longer and more complicated selling process.
With a currently low amount of homes coming to market, anyone thinking of listing is in a prime situation to sell. Most markets in the country are seeing record lows for days on the market, with many of the homes getting multiple bids and more than asking price.
On the flip side, waiting to sell could mean more competition and losing interested buyers to new construction homes.