Presented By:

Homes for Sale Are Rapidly Disappearing

News | 17th Nov 2020
Homes for Sale Are Rapidly Disappearing | MyKCM

Through all the challenges of 2020, the real estate market has done very well, and purchasers are continuing to take advantage of historically low mortgage rates. Realtor Magazine just explained:

“While winter may be typically a slow season in real estate, economists predict it isn’t likely to happen this year…Low inventories combined with high demand due to record-low mortgage rates is sending buyers to the market in a flurry.”

However, one challenge for the housing industry heading into this winter is the dwindling number of homes available for sale. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), recently said:

“There is no shortage of hopeful, potential buyers, but inventory is historically low.”

In addition, Danielle Hale, Chief Economist for realtor.com, notes:

“Fewer new sellers coming to market while a greater than usual number of buyers continue to search for a home causes inventory to continue to evaporate.”

One major indicator the industry uses to measure housing supply is the months’ supply of inventory. According to NAR:

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”

Historically, six months of supply is considered a normal real estate market. Going into the pandemic, inventory was already well below this mark. As the year progressed, the supply has was reduced even further. Here is a graph showing this measurement over the last year:Homes for Sale Are Rapidly Disappearing | MyKCM

What does this mean if you’re a buyer?

Be patient during your home search. It may take time to find a home you love. Once you do, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and understand how the shortage in inventory has led to more bidding wars. Calculate just how far you’re willing to go to secure a home if you truly love it.

What does this mean if you’re a seller?

Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to ask for more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Do not be unreasonable, but understand you probably have the upper hand.

Bottom Line

The housing market will remain strong throughout the winter and heading into the spring. Know what that means for you, whether you’re buying, selling, or doing both.

 

SOURCE Keeping Current Matters, Inc. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Gellens Investments, Berkshire Hathaway HomeServices California Properties and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share & Print This Post
Choose A Topic Below

How much is your
Home worth?

Looking for a home? Talk to an Area Expert...
  • This field is for validation purposes and should be left unchanged.
Follow Us

4 days ago

Maxine & Marti Gellens, Berkshire Hathaway HomeServices

PRICE IMPROVEMENT
$859,000
This beautifully appointed townhome rests in a tranquil location within The Villas of Whispering Palms. A gated entry courtyard welcomes you into elegant living spaces offering engineered wood floors, a fireplace, generous granite kitchen with an abundance of cabinetry, and a slider opening onto an enclosed patio perfect for lounging or dining al fresco. Upstairs you will find all 3 bedrooms with vaulted ceilings including the master suite with a spacious walk-in closet, fireplace and private balcony.

4062 Avenida Brisa
Rancho Santa Fe, CA 92091
3BD | 2BA | 2,062 sq.ft.

#whisperingpalms #rsf #ranchosantafe
...

View on Facebook

7091 Caminito Valverde
La Jolla, CA 92037

4 Beds | 3.5 Baths | 2,618 SqFt

Ocean views and a tranquil, park-like setting surrounded by vast open space are yours to enjoy from this exceptionally private home in La Jolla Summit. Upon entry you’re welcomed by sun-filled living areas with an inviting indoor-outdoor flow consisting of a spacious living room with a fireplace, formal dining room, and an architecturally designed chef’s kitchen adjacent to the family room. All 4 bedrooms are conveniently situated upstairs including the generous master suite showcasing vaulted ceilings and an incredible view of the ocean. Serene outdoor spaces enable effortless entertaining from its extra-large, low maintenance yard with four separate patios and a hot tub. Residents of La Jolla Summit benefit from community amenities comprised of a clubhouse, 2 pools, 3 tennis courts, a fitness center, kid’s playground, basketball, indoor racquetball, an indoor spa and LOW HOA fees. Enjoy easy access to the freeway, beaches, as well as Village shops and eateries. This is a rare offering in an enviable location that only one family will be lucky enough to call home.

#lajolla #lajollarealestate #lajollasummit #sandiegorealestate
...

View on Facebook

7 days ago

Maxine & Marti Gellens, Berkshire Hathaway HomeServices

Check out this beautiful work in progress! Our landlord commissioned @sojournerartist to paint this mural in our building breezeway. How cool is that. We’re already enjoying the new life and positivity it’s bringing by our office.
#lajollamurals #lajollamural #lajollaarcadebuilding
...

View on Facebook