If you are thinking of selling your home, which is your biggest asset, then it is important to keep an eye on the value of your home and what’s going on in the market. If you are a buyer in the current market, then you have probably noticed that there aren’t many homes out there for you to choose from. I’ll go over a few tips for each of you today.
First of all, let’s talk about the market. In our last update, we talked about how low inventory was. Back then, there were 1.8 months of inventory on the market, which meant there were only 1,699 homes to choose from. That number did go up by the end of February, but only by 25. There were 1,724 detached homes on the market, which means that if no new homes came on the market, we would be out of homes in less than two months!
If you are looking for an attached home, like a condo or townhome, there are only 374 of those on the market. That’s less than one month of inventory!
The low inventory has driven prices up. The average price for detached homes is up to $813,000 and the median price is up to $630,000. In lower price points, homes are selling fast. If you go above the average price point for your area, those homes are sitting on the market for a lot longer. So, if you are thinking of selling your home and your property is at or below the average price, then you are in a great position in the current market.
On the other hand, buyers are struggling to find homes. There are not many options to choose from, which means the market is very competitive. As a buyer, there are three things you can do to position yourself better in the current market:
1. Get your loan fully underwritten. Many buyers get pre-qualified or pre-approved. Pre-qualified buyers submit their information and the lender says, “You can probably get qualified for this amount.” Pre-approved means that a lender has reviewed your information and said that you are very likely to get approved for a certain amount. However, if you get your loan underwritten, then your loan is already approved, subject to a couple of small conditions such as an appraisal and a clear title. If you get fully underwritten, then the seller knows that you can close and you will close quickly.
2. Take a look at off-market listings. If you are interested in a certain area but there isn’t any inventory available, there may be other homes that failed to sell in the last couple of years that you can look at. If those listings expired or canceled, the seller may still be interested in getting out of that house. A good agent will contact those people and say, “Hello, I have a fully underwritten buyer who is interested in your home.”
3. Work with a great agent. There are lots of agents out there, but a good agent will have a good reputation in the community. They can call the listing agent and have a good discussion with them about your qualifications. Agents like working with good agents because they know the transaction will be smooth and the agent will be honest and ethical. Good agents will pull expired or withdrawn listings and go after them.
Ultimately, although our market favors sellers and is still incredibly competitive, there are a few things buyers can do to successfully purchase a home. If you have any questions, please don’t hesitate to give me a call or send me an email. My team and I would be happy to help you!