Here’s a chart illustrating the supply of homes for sale as reported by the US Census Bureau. This illustrates how many months it would take to sell all the houses currently listed for sale, at the current pace of home sales. For example, if there are 500 homes currently listed for sale, and an average of 100 homes are selling each month, there would be a 5-month housing supply. This is because it would take 5-months to sell all the homes currently listed for sale.
More than a 6-month housing supply is a buyer’s market. Less than a 6-month supply is a seller’s market. Housing supply is running at less than four months locally. THIS INDICATES A SELLER’S MARKET. Here’s how this impacts you:
- You May Have to Compete with Multiple Offers on a Home. In some cases, there have been dozens of offers on the same house.
- You May be Competing With Cash Buyers. In many cases, you may be bidding against cash buyers who don’t need to wait for financing approvals. Look at it this way: if you were the seller, would you prefer to do business with a buyer who needs to wait for financing approvals or a cash buyer who can close the deal quickly?
There are three main strategies that my clients are implementing right now to beat the competition and avoid getting outbid on their new home. Contact me for more details!