The State of the Spring Market
Tomorrow is the first day of spring, so we at Hart & Olive think it's a perfect time to give you a quick update on how the real estate market is looking as we get into what is, traditionally, the busiest time of the year.
Before we go on, let's define a word we're going to use: inventory. When real estate agents talk about "months of inventory", it's our fancy way of calculating how much is out there based on the rate of sales. For example, if there were six months of homes for sale in a neighborhood and they sell at a rate of one per month, where there's six months of inventory. If three sell per month, then it's only two months of inventory. It varies from neighborhood to neighborhood. Generally speaking, six months is a balanced market where buyers and sellers have the same amount of control of the market. More than six, and buyers can ask for more, and less than six the seller has more control.
The story continues to be a lack of inventory, in all price points and all locations. There are obvious reasons why people are hesitant about putting their homes on the market now, and we understand! However, the supply is so low that there aren't enough homes for the people who absolutely have to move (think of job transfers).
We're seeing multiple offers and homes selling for 5-8% above list price. Sellers remain in control of the transaction.
BUT, you still can't list your home for more than market value. While buyers have accepted that they might have to pay more than list price on a home, an overpriced home will sit on the market.
Long story short, there has never been this low inventory given the demand for homes in the area.