by Helen Sage
on Tuesday, March 6th, 2018 at 11:00am.
Where is the Spring Market?
Wait for the Spring Market, homes will start to list soon! Many of you have probably heard this, wished this, and we too, have hopefully said it. So how much longer must we wait?
There was a decrease in homes sales in January. Sales tumbled 33.3 percent in the Northeast to the lowest level since August 2016. However, this was not due to a shortage of homes for sale, it was due to a shortage of affordable homes for sale. The median price for a new home has increased 2.5 percent in January to $323,000 from a year ago.
301,000 new homes went on the market last month which is an increase of 2.4 percent and the highest level since March 2009.
As we mentioned in our last state of the market blog post, a healthy market has a 6-month supply of listings, meaning it would take 6 months to deplete the market if no new homes were listed. Using January’s sales pace, it would take 6.1 months to deplete the inventory which is the highest since July 2014 and an increase from December’s 5.5 months.
According to the National Association of Realtors’, the breakdown of price points is as followed:
Homes priced below $100,000 fell 13% in January year over year
Homes priced between $100,000-$250,000 fell more than 2%
Home priced between $500,000-750,000 are up almost 12%
The problem with that breakdown is that more than half of buyers are in the below than $250,000 bracket. Only 13% of buyers are looking above $750,000.
According to Joe Kirchner, senior economist at Realtor.com, "Affordable inventory has been more depleted than expected and the upcoming spring homebuying season will likely be filled with bidding wars and multiple offers.”
What does this mean? No, you do not need to rent forever and no, you are not “stuck” in your current home. It means we must be on our toes and aggressive. If you are working with our team, we will work diligently to ensure you have the newest listings as soon as they hit the market. We will work to accommodate schedules and get you in to see any homes you are interested in. Having a pre-approval letter from your lender is vital as we will need that to submit an offer. If you are not working with a mortgage company, we will gladly recommend one!
If you are struggling to decide whether 2018 is your year to sell, please give us a call! We will provide and review a comparative market analysis specifically for your home and help you weigh the pros and cons of selling this year. Buyers are scrambling to get locked into lower interest rates before they get too high and the inventory is low! If you’re thinking of selling, this is the time!
As always, please reach out to the Campbell Sage Team with any questions!