March 19, 2019
In any given market, inventories fluctuate based on supply and demand considering area and price range. The National Association of REALTORS considers a balanced market to be a six-month supply of homes.
A strong seller’s market like what we’ve been experiencing in Essex County, often leads to stiff competition for each home on the market – BIDDING WARS!
For those seeking a home this spring, inventory has the most direct impact on the price they will end up paying. Simple rules of supply and demand dictate the direction pricing will head.
HOME SELLERS – THIS IS YOUR SIGNAL TO MOVE! Demand has remained constant and competition has been fierce, but come full spring, will you see the same equity gains you could see right now?
The temptation to wait for warmer weather might even make it more difficult to find your next home.
Since the majority of those selling a home aren’t just selling property but will be purchasing another, a balanced market allows you to move up, downsize or even make a lateral move to an area more convenient to work and life style.
While I empathize with the circumstance of being on the wrong side of a bidding war, there are steps to be taken to increase the likelihood of successfully closing on the next home you want. It isn’t always about being the first offer made, or even necessarily the highest offer. Being ready to move quickly, with all of your financing in place may be the biggest obstacle and can be easily overcome with advance preparation.
Understanding the local inventory is one of many important factors your local marketing specialist will advise you about when choosing timing and pricing to sell your current home.
According to the National Association of Realtors, housing markets haven’t seen a six month supply of homes for sale since 2012. Why is that number significant? The general consensus is that a six month supply is what balances a marketplace – neither buyer nor seller is especially favored. That said, competition is a good stimulus to the market and balance between inventory and demand benefits buyer and seller.