Welcome to the July, 2023 edition of our real estate market update, where we provide you with valuable insights into the ever-changing housing market. Make well-informed decisions with the latest information at your fingertips. Let’s dive into the current state of the market.
Limited Housing Inventory: A Challenge for Buyers
One of the prevailing issues in today's housing market is the significant mismatch between the number of homes available for sale and the high demand from potential buyers. To illustrate just how limited housing inventory remains, let's delve into the latest information on active listings.
To emphasize the extent of the housing inventory shortage, recent data from Realtor.com reveals that the average active inventory in June was 50.6% below the levels seen in the pre-pandemic years of 2017-2019. This significant decrease in available homes has lasting implications for the market dynamics.
Opportunities for Sellers in the Current Market
If you have been contemplating selling your house, now is an opportune time to take action. The constrained inventory levels have resulted in a situation where buyers have fewer options compared to previous years, significantly impacting various statistics in the housing market.
Recent data from the latest Confidence Index by the National Association of Realtors (NAR) provides encouraging statistics for sellers:
- The rate of homes sold in under a month has slightly increased to 74%, indicating a robust demand for well-priced properties.
- The median number of days a property stays on the market has decreased to just 18 days, reflecting the continued trend of fast sales when homes are appropriately priced.
- Sellers are benefitting from increased competition, as the average number of offers on recently sold homes has risen to 3.3 offers.
Expert Opinions: The Benefits of Selling Now
Industry experts weigh in on the advantages of selling in the current market:
- Lawrence Yun, Chief Economist at NAR, highlights the return of multiple offers due to historically low inventory levels.
- Selma Hepp, Chief Economist at CoreLogic, predicts continued market competition and upward pressure on prices as the undersupply of housing persists.
- Clare Trapasso, Executive News Editor at Realtor.com, reports that well-priced, move-in ready homes in desirable areas are attracting multiple offers and often selling above the asking price.
- Jeff Tucker, Senior Economist at Zillow, assures sellers that competitively priced and well-marketed homes should have no trouble finding buyers.
Sources: Keeping Current Matters, Realtor.com, National Association of Relators
