Inventory is low in our market, which means buyers can’t be picky and sellers can attract multiple offers for their home as long as they price it correctly.
What’s the latest word from our 2018 market so far?
This year started very aggressively. What I mean by that is inventory was so low that it forced buyers to be aggressive and overbid with their offers.
From 2015 to 2017, we averaged roughly 48,000 active homes on the MLS across Southern California during the month of February. Usually, the month of February has the lowest level of inventory out of the entire year. Inventory then typically picks up once we get into the summer months and then declines again during the fall and winter. This year, inventory levels dropped to 34,000 homes during the month of February, which is a record low.
If you’re a seller and you put your house on the market right now, it will likely be one of the only homes listed for sale. This means as long as you price the home correctly, it should attract multiple offers and you should receive favorable terms.
If you’re a buyer, now’s not the time to get picky. You need to be aggressive and be aware of the market conditions so you can use them to your advantage. Most buyers don’t realize how low inventory is right now, so they end up getting priced out of the marketplace trying to get deals that just aren’t probable. They continue to get outbid and wait around. Meanwhile, prices keep going up and interest rates keep rising, thus making homes less affordable as time goes on.
In this situation, knowledge is power. Be sure to use these statistics to your advantage and give yourself the competitive edge you need.
If you have any other questions about our current market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.