In 2005, the market in this area was at it’s peak with a lot of multiple offers and prices rising every day.  While we can’t say prices are rising at the same rate (thank you government regulations) it does feel like the market environment of 2005. We are actually short about 200-300 homes for sale in the market place right now and buyers and sellers are feeling it. Homes are selling for over asking price and the competition is fierce. Let’s look at the details. . .

DEMAND: The number of sales continues to mirror 2015, almost exactly, which is pretty amazing, up only 3% over last year. The big deal is that there isn’t as much for them to choose from and because of that it feels like there are a lot more buyers in the market. Buyers have to be much more aggressive in their offers than they were last year. In some places where demand is more concentrated, they must be willing to go over asking price and in many cases at least split the difference if the home doesn’t appraise for sale price. It underscores the need for Buyers to have the best representation they can possibly have.

SUPPLY AND INVENTORY ACCUMULATION: Until April, the supply was averaging about 6% higher than last year until April, when it went about 6% under 2015.  The major reason for this is that there were about 200 less homes listed in April 2016 than the year before. This has caused the inventory accumulation to take a serious deviation from last year.  This time last year, there was about 6 months of inventory, county wide. That’s a balanced market.  This year its at 5 months, which is a pretty solid seller’s market.  Unless a whole bunch of folks decide they want to move and put their homes on the market, it’s likely we will continue to see a lack of inventory.

SOLD TO LIST RATIO: In April, this figure more closely matched last year, however the two previous months were a good bit below 2015. It’s mostly due to some higher end sales happening, which usually see a lower ratio than the lower price ranges, and that drags the rate down. What this continues to tell us is that sellers are getting more for their homes than they have the last 5 years.

CONCLUSION: Overall, it’s extremely important that anyone entering the Real Estate market have someone next to them that knows the “waters” they are wading into.  There is too much at stake financially and otherwise to not have the best expert, that you 100% trust, walking with you.

For buyers, it can mean that you miss out on multiple homes that you really love due to weak offers. For sellers, it could mean leaving a lot of money on the table due to not pricing your home at just the right number, whether too high or low.   So make sure that the agent you choose has a lot of experience selling homes in the last 12 months and has strong integrity.  Oh, and you should really like them too. That certainly helps.