You’re considering moving and hear that there’s an inventory shortage. What does that mean? And how does it affect you?
According to the National Association of Realtors, the number of homes for sale nationwide between March and April was 13.6% below the level of a year ago. Comparing homes for sale in Elmhurst, we’ve seen a 25% decrease in volume between the 12-month period ending May 2011 and that ending May of 2013. Simply put, that means when you go out looking for houses, there are less available to you than in recent years. Fewer homes are listed, and they move off the market more quickly.
What does that mean for buyers and sellers in the Elmhurst community? In many ways, this is a perfect time for current home owners to move. Prices are still low for buying but are much better for sellers than over the past few years. At LW Reedy we help our buyers and sellers understand that inventory shortage affects your preparation process, whether you’re looking for a new home, selling your home, or both.
In a market with an inventory shortage, buyers feel the pressure of the time crunch.
- Homes are staying on the market for less time. If you find a home you like, be prepared to make a decision quickly before another buyer comes in with an offer faster than you.
- Inventory shortage also creates multiple offer-situations. Be prepared to go in with your best offer.
- Educate yourself about pricing before you’re ready to buy. Visit multiple homes with your LW Reedy realtor.
- Research home improvement costs. With the buying process going quickly, you may not have time to call in a contractor to give you an estimate for a new kitchen or flooring. Having some general costs in mind can help you make a wise decision.
- In general, an inventory shortage affects the market with increases in housing prices and mortgage rates. Take advantage of the current house prices and mortgage rates now before they go up.
Sellers need to be prepared for the unique selling situation of an inventory shortage as well.
- Sellers need to be well educated on pricing in the area. While prices are increasing overall and overtime and you can get more for your home than last year at this time, there is a tendency to overprice in this situation. Overpricing creates difficulty for the seller because you lose time and you lose leverage with buyers, especially as the market time (number of days on the market) increases. An increase in market time makes buyers wonder why it’s not selling, if there’s something wrong with the house.
- Be ready for your house to sell quickly. Make sure you have a plan in place for your new home and are getting ready for your move.
The best first step if you’re thinking of buying or selling is to find a Realtor. Our LW Reedy Realtors know the market in Elmhurst and the surrounding area and can be sure you’re well-educated and ready to buy and sell with confidence in this inventory shortage market. Check our listings to get a feel for the houses on the market, and contact us to set up a time to discuss your needs.