Happy Halloween Mountain House Family! I am pleased to bring you the September/ October market update.
With the temperature changing outside, many in the market to buy or sell a home have hopes that the real estate market is also changing in their favor. We are still in a “seller’s market”, like the previous month. Inventory has slightly increased from the last update. Here at Refined Real Estate, we have listed 5 homes since the last update. All of our listings have gone pending in the first week, well over the asking price.
There are many buyers still out there searching for homes, although we have noticed a slight dip in buyer activity. There are currently have 12 homes for sale in Mountain House compared to 8 during the last market update. We have 1.33 months of standing inventory compared to 0.39 last month. We are still seeing Non-contingent offers, but some offers have been coming in with some contingencies attached. Some homes coming on the market with unrealistic expectations are just sitting with little to no movement. As I have said in past articles, that’s a seller and realtor issue, NOT a market issue. This market can be very confusing for many buyers and agents. Not all homes are flying off the market for well over the asking price. Homes still need to show well, be tastefully presented to the market, and be priced realistically to get the attention of serious buyers.
If you have any questions about this article or our Real Estate market, feel free to contact me anytime. Remember, choosing a Realtor with vast experience listing & selling homes in your local market will put you in the best possible position to navigate these ever-changing Market conditions.
Why Does Inventory Continue To Stay Low?
We are experiencing a rippling effect from the historic low-interest rates during the past few years. Homeowners who purchased or refinanced during that time are less motivated to sell their current or primary home because of the low-interest rates they have. Many of the homes we see hit the market are secondary homes (rentals) or “life events” that are occurring i.e., an unfortunate death, separation/ divorce, or work relocation. The interesting part is that when you run the numbers, selling, and buying currently do make sense in many situations. Even though the interest rates are higher than the historic lows.
Our Mountain House home values are continuing to rise. The best and most accurate way to get your current home value is to talk with a local agent. Most homeowners are in utter shock at their current home values!
In our ever-evolving digital age, most homeowners utilize websites that have algorithms in place to obtain their current home value. Those sites cannot even remotely keep up with this current market and are highly inaccurate in most to all cases. Reaching out to a local and experienced Realtor is going to be the best approach for an accurate home value.
What Is a Buyer’s Market?
A buyer’s market refers to a situation in which changes to the underlying economic conditions that shape “supply and demand.” It means that purchasers have an advantage over sellers in price negotiations. A buyers market occurs when there is six (6) or more months of Inventory supply available.
What is a Neutral Market?
A Neutral market is when we have three to six (3-6) months of inventory supply.
What Is a Seller’s Market?
A seller’s market is a market condition characterized by a shortage of goods available for sale, resulting in pricing power for the seller. A Seller’s Market is a term commonly applied to the property market when low supply meets high demand. A sellers market equals less than three (3) months of inventory supply.
What Does Months Of Inventory Mean?
Months of inventory takes into account the number of homes for sale on the market with recently sold homes and reflects the number of months it would take to sell all homes currently on the market. You can calculate months of inventory by dividing the total number of homes for sale over the number of homes sold in one month. When months of inventory are low, it’s a fast-paced market dominated by buyers and few sellers. When months of inventory are high, there are generally more homes on the market (dominated by sellers) with fewer buyers or sales.