When you have buyers chomping at the bit to buy a home and take advantage of market conditions and mortgage rates, the lack of inventory has put a damper on the housing recovery. When you have twenty buyers bidding on the same property, is certainly a tell-tell sign that demand far outweighs supply. The shortage of inventory has had a huge effect for both buyers and sellers. Owners are reaping the benefits of the scarcity of viable buying options. In some neighborhoods there might be a couple of buying opportunities for buyers and this in turn has created many buying frenzies.
The supply of homes are an indicator of the issues many buyers are dealing with presently. Many areas in Sacramento have less than a one month supply of properties on the market. Davis has a three-month supply of homes available. A normal market would have about a five month supply. There are homeowners that have delayed moving, due to the absence of equity in their home. Many homeowners have decided to settle in and wait for prices to appreciate.
Prospective home buyers still have to envision themselves in a home and will not concede buying just any property. On the other hand, many buyers have bid on a number of homes and have lost out to higher bids. Would be buyers are packing open houses and some homes are sold before they hit the market. A good percentage of these buyers are paying all cash, foregoing the chance to take advantage of todays mortgage rates, for a better shot at purchasing a home. Sellers that price their home correctly are getting multiple offers that exceed the asking price in most cases.
The current state of housing and the limited inventory will be with us for the time being. There’s no magic wand that will persuade owners to sell their home and most have come to the conclusion that holding on to their present home is a wise move. Buyers will continue the fierce competition with other buyers for the occasional home that comes on the market. Housing moves in cycles and we are in a high demand, low supply phase. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes in Davis, California and the surrounding communities, including pre foreclosures.