Home for Sale High in Demand but Low in Inventory

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Home for Sale High in Demand but Low in Inventory

Home for Sale are still low in supply. An Existing Home Sales Report by the National Association of Realtors (NAR) explains that the supply and demand of an item dictates its pricing, which is a formula which can be used to understand today’s market conditions as well.

Inventory Levels & Demand

In March, existing home sales increased by 5.1% month-over-month and are 1.5% higher than sales last year at the same time. All four major regions experienced an increase in sales for the month of March.

Unsold inventory of housing sits about 1.5% lower in comparison to March 2015 with a 4.5-month supply. Inventory has remained below average for the 6 months which is required to consider the market historically normal for home for sale.

While inventory is low, home buyers’ confidence remains higher than it has been in a decade. This combined with interest rates below 4% and down payments as low as 3% has resulted in a very attractive market.

In less than a month 42% of properties sold, with homes sitting on the market for an average of 47 days in the month of March.

Prices Rising

The month of March has become the 49th consecutive month of year-over-year price increases, when the median price of existing homes for sale increased to $210,700 (an increase of 5.7%) compared to 2015.

So What Does This Mean?

Home prices and their impact on home inventory are displayed below:

Homes for Sale High in Demand but Low in Inventory

Lawrence Yun, Chief Economist of NAR explains that there is still a lot of demand from buyers in most areas this season, and the mid-priced market has continued to thrive. Sales however are softer at the high and low ends of the market because of short supply and lack of affordability.

Bottom Line

If you are considering putting your home for sale, now is a great time to get started. Home buyer demand is at its highest level, and there is a limited amount of supply to take advantage of.

At ShowcaseRealty.net we cater to all homeowners looking to sell in the Dilworth area. Send us a message here and let us discuss how we can be of service to you! Feel free to also read one of our many testimonials to see how we can help you sell your home no matter how long it’s been on the market.

Do you have specific questions? Feel free to call us at 704.997.3794 and we would be happy to help!

Your Home is guaranteed to sell within 120 days or I will pay you $2,500. *some conditions apply*

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What Home Seller Should Know about Today’s Housing Markethomeowners