Lack of inventory hurting the market.

 

I’m sure you’ve seen the headlines lately. If not, here are a few from national publications:

“Supply at 20 year lows”

“US Home Sales Fall As Record-Low Inventory Boosts Prices”

“Low Inventory Will Be Huge Challenge To Home Sales In 2018”

While it’s often been stated that timing the market is impossible, I could argue that now is the best time to sell if you want the highest price for your home.

STATE OF THE MARKET

The number of homes for sale in Solon and surrounding areas are at all time lows for this time of the year. By mid-March, we usually see 120-140 homes listed for sale in Solon. As of today, there are merely 69 active listings.

Here is a list of the number of active listings in east side suburbs:

Beachwood 30

Moreland Hills 35

Orange 10

Pepper Pike 49

Solon 69

WHY THE SHORTAGE?

Everyone in the industry agrees there is a shortage. While the specific reasons are up for debate, here are some thoughts:

  1. INVESTORS ARE HOARDING THEIR INVENTORY – Many investors who snatched up properties during the recession intended to rent the homes initially, then sell when the market improved. The investors aren’t selling.
  2. BABY BOOMERS AREN’T MOVING - Baby boomers typically downsize after their kids finish high school. Today, more are staying put because they can’t find another home that is smaller, cheaper, and nicer than the one they have now.
  3. PEOPLE LOVE THEIR HOME - Many homeowners have done a ton of updates over the years and are content with what they have.

WHAT THIS MEANS TO YOU

If you are considering selling your home in the near future, you will get a premium by selling now.  Even if you aren't thinking of selling , consider this. Is there a price that would get you to sell? If an agent brought you a buyer who offered more than you ever imagined for your home, would you take it?

Houses are flying off the market and the few lucky sellers in the market are taking advantage. I am baffled by the amount of money some of these homes are selling for, but that is simply a function of economics.

I only wish I was selling my own home this year, because I couldn’t imagine another time when inventories will be this low again.