Six months ago, wereportedthat the mismatch between the type of inventory of homes for sale and the demand of buyers in the US was causing the formation of two markets.
In the starter and trade-up home categories, there were significantly more buyers than there were homes for sale, causing aseller’s market.In the premium, or luxury, home categories, the opposite was true as there was a surplus of these homes compared to the buyers that were out searching for their dream homes, which created abuyer’s market.
According to theNational Association of RealtorslatestExisting Home Sales Report, the inventory of existing homes for sale in today’s market is at a 4.2-month supply. Inventory is now 6.5% lower than this time last year, marking the 27thconsecutive month of year-over-year decreases.
Looking at the latestreportfromTrulia, we can see that not much has changed, and in fact, recent natural disasters across the country have made inventory conditions even more dire.
Trulia’smarket mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example:“if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”
The results of their latest analysis are detailed in the chart below.
Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, which is leading to a highly competitive seller’s market in these categories.
Premium homebuyers, on the other hand, have the best chance of less competition and more inventory of listings in their price range with a 14.7-point surplus, which is creating more of a buyer’s market.
Real estate is local. If you are thinking about buying OR selling this fall, let’s get together to discuss the exact market conditions in your area.
Author:Wanda Jones Phone: 972-569-7154 Dated: October 6th 2017 Views: 196 About Wanda: ...
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