It is a function of supply and demand. When the supply (inventory) is low and there is an abundance of buyers it is imperative that buyers educate themselves quickly and put themselves in a position to react quickly. The shortage of supply will most likely cause multiple offer situations and result in buyers paying over asking prices in many situations. Buyers need to know what to expect in their price range and be able to decide quickly if a home meets their needs/wants and know how far they can go and still be comfortable. Buyers also have to be pre-approved or have available cash to purchase. It is a difficult challenge for buyers and realtors when the inventory is down.
That means that buyers are no longer in control, the situation has swung to the benefit of the seller and most likely the market value of existing homes will increase.
If a buyer finds something they like... they should act on it right away!... With such low inventory sellers are usually able to get their price. And buyers lose out if they don't act right away...
Actually Allyn, The inventory has improved ever so slightly. But over all you are correct. There are still more qualified buyers than homes for sale. This means that the rule of supply and demand takes over. Lack of supply drives prices up until a plateau is reached and the pricing is no longer attractive to the buyers. That is when we start to see a stall. With school starting and the holidays just a couple of months down the road we are starting to see some of that stall. It is not a huge drop in price, as much as it is a stabilization of the pricing. This is still a great market to sell a home, and a great time for buyers to get in before the next seasonal change.
When shopping for a home in a low inventory market buyers need to understand they may need to remove some items from the wish list. Realtor needs to ask them if they like the home and if so if they decide to sleep on it and the house gets sold out from under them while they contemplate .....how disappointed would they be if they don’t get that house?... very disassappointed means you should write on it right now.!!! Cheers happy selling ...referrals welcome! Deborah Kurtz Homes For All Realty Calgary AB Canada
Supply and demand. When supply drops, prices rise. If in the wake of increasing prices some become overzellous in the price hikes, the market will let them know and their property will sit on the market. However, serious buyers should move quickly when you consider the drop in inventory and rising interest rates.
Great question Allyn! This is supply and demand economics, when there is a low supply and high demand prices go up. So what we have in many areas of the country is a seller's market, that being said if the house is in a good location, priced right, and move in ready the house can be sold within a couple of months, and in many situations above asking price. I hope that helps.
Normally as you would expect the Sellers would be in a better position to maintain there listing prices, however it also depends in what region and neighborhood a buyer is seeking a home.
Realistically it also matters as to what price range we are referring to.
Answers (1-10)
It is a function of supply and demand. When the supply (inventory) is low and there is an abundance of buyers it is imperative that buyers educate themselves quickly and put themselves in a position to react quickly. The shortage of supply will most likely cause multiple offer situations and result in buyers paying over asking prices in many situations. Buyers need to know what to expect in their price range and be able to decide quickly if a home meets their needs/wants and know how far they can go and still be comfortable. Buyers also have to be pre-approved or have available cash to purchase. It is a difficult challenge for buyers and realtors when the inventory is down.
That means that buyers are no longer in control, the situation has swung to the benefit of the seller and most likely the market value of existing homes will increase.
If a buyer finds something they like... they should act on it right away!... With such low inventory sellers are usually able to get their price. And buyers lose out if they don't act right away...
Actually Allyn, The inventory has improved ever so slightly. But over all you are correct. There are still more qualified buyers than homes for sale. This means that the rule of supply and demand takes over. Lack of supply drives prices up until a plateau is reached and the pricing is no longer attractive to the buyers. That is when we start to see a stall. With school starting and the holidays just a couple of months down the road we are starting to see some of that stall. It is not a huge drop in price, as much as it is a stabilization of the pricing. This is still a great market to sell a home, and a great time for buyers to get in before the next seasonal change.
When shopping for a home in a low inventory market buyers need to understand they may need to remove some items from the wish list. Realtor needs to ask them if they like the home and if so if they decide to sleep on it and the house gets sold out from under them while they contemplate .....how disappointed would they be if they don’t get that house?... very disassappointed means you should write on it right now.!!! Cheers happy selling ...referrals welcome! Deborah Kurtz Homes For All Realty Calgary AB Canada
Supply and demand. When supply drops, prices rise. If in the wake of increasing prices some become overzellous in the price hikes, the market will let them know and their property will sit on the market. However, serious buyers should move quickly when you consider the drop in inventory and rising interest rates.
Great question Allyn! This is supply and demand economics, when there is a low supply and high demand prices go up. So what we have in many areas of the country is a seller's market, that being said if the house is in a good location, priced right, and move in ready the house can be sold within a couple of months, and in many situations above asking price. I hope that helps.
Either buyer could pay more than the asking price or better wait for the market correction which most likely could happen in the near future.
Normally as you would expect the Sellers would be in a better position to maintain there listing prices, however it also depends in what region and neighborhood a buyer is seeking a home.
Realistically it also matters as to what price range we are referring to.
Regards- Michael D. Mauer
If the market is low on inventory, the property you might be interested in should be sold quickly if its priced anywhere near its current value