|Spring 2018 Home-Buying Season to Be Marked by Low Inventory
Home buying activity tends to pick up in the spring, as more and more buyers shake off the winter chills and prepare to enter the real estate market. This year, the spring home-buying “season” will be marked by low inventory across much of the country and we are seeing it at Diamond Cove as well. This will keep things competitive for home buyers seeking a property to purchase.
42: Number of Months Inventory Has Declined
Inventory has been the big housing headline for the last couple of years. And real estate markets nationwide continue to contract, as demand outweighs the supply of homes for sale.
According to Danielle Hale, chief economist for realtor.com, inventory within the nation’s housing market has been dropping steadily for years.
“This year  there is even less inventory than last year,” she told Forbes recently. “According to our February 2018 data inventory is down 8.5% from last February.”
According to Hale, housing market inventory (the number of homes listed for sale) has declined for 42 consecutive months. That’s nearly a four-year trend!
There has been an uptick in new construction permits nationwide and we certainly see it on the island as well as we currently have 5 homes under construction.
What It Means for Buyers and Sellers
For home buyers, these trends highlight the importance of working with an experienced real estate broker when making a purchase. A broker can help you navigate the local real estate market and make a strong offer in a timely fashion. This is the key to success in a tight, competitive housing market. These are the kinds of conditions we are seeing nationwide and on the island, as we enter the spring home-buying season.
Sellers can benefit from the high demand and relatively low supply we are seeing right now. Under these conditions, homes tend to sell faster and for a higher percentage of the initial list price. Multiple-offer situations are also more common when housing demand exceeds the available supply.
All in all, it should be an interesting spring at Diamond Cove for the real estate market!