I’ve been getting these monthly reports from Kelly Tierney with PorchLight Real Estate Group for years now, and I must say they are fantastic. They are great for understanding what’s going on in the market place for both buyers and sellers.
I mainly focus on the months of inventory section (DSF Inventory and ASF Inventory), which indicates how long it would take for all the existing homes/inventory to sell off, assuming no new listings came on the market. In order for us to be in what’s considered a “balanced market” (not a sellers market or buyers market), we need to be at 6 months of inventory. I can’t tell you the last time I saw us be more than 1 month of inventory. This indicates that it’s still very much considered to be a “sellers market”.
Even though we’re still in a sellers market, it’s a great time to buy, and here’s why: Look at the Year-Over-Year average sold price for Detached Single Family (DSF) and Attached Single Family (ASF) homes. 11.2% and 16.5% respectively. If I were a buyer, I would much rather buy in an appreciating market (like the one we’re seeing now), as opposed to a “buyers market”. When buying in a “buyers market”, this means that inventory is increasing (supply is outpacing demand), meaning that home prices would be decreasing as opposed to gaining 11.2%/16.5% YOY appreciation. Buying during a sellers market is a great way to realize an immediate gain on your home purchase. If you finally buy when the market tops out and is becoming a buyers market, it means that we’re at the peak of home price appreciation, and home prices will plateau or start to descend after that.
Even though this is a great time to be a seller, it’s also very much a great time to be a buyer and capitalize on future gains. Why would anyone want to buy when home prices are decreasing (aka buyers market)?
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