The discussion of inventory these days permeates the real estate headlines. There seems to be either too much inventory or not enough. Right now, there’s not enough.
Starting off the summer in Olympia WA, the real estate inventory levels are low even though we have had more listings come on the market. But these new listings have been snapped up by buyers, who were ready and waiting.
A few stats:
In June 2015 – 545 new listings put on the market.
In June 2016 – 687 new listings
More listings but also more buyers.
The standing inventory in the Olympia WA area is 10% lower than last year.
In the last 20 years, 2016 is the 4th lowest level of inventory. Only 2003 – 2005 had lower levels of summertime inventory.
It can be brutal out there for buyers.
Most buyers know or have learned the hard way, that being prepared and being able to make decisions quickly are important in securing a home. Prepared buyers are pre-approved with a lender. And if buyers need to sell in order to buy, they have also taken steps to prepare their home for a quick sale.
Buyers are running into situations where they will need to compete against other buyers, which has the potential of running up the asking price.
Buyers also need to prepare to be able to walk-away, too. If the bidding gets too high, or the terms are too aggressive, it’s okay to bow out. Sometimes that ends up being the best decision. It’s up to a buyer to determine their level of risk.
Sellers aren’t necessarily having a walk-thru-park experience, either.
They may get multiple offers and they may have offers over asking, but the big question is if the house will appraise for over the asking price. (In other markets, most buyers are cash, but here in Olympia WA, the majority of buyers are getting a loan and therefore, will have an appraisal.) Sellers and their agents really have to examine the market to determine if there are comps to support a higher price.
Also buyers do get in a competitive mode and after the dust settles, may have second thoughts. Our market has seen many transactions terminate. Sellers may have a tough time vetting out the buyer that will stick through the transaction.
But I think any seller will take today’s market over the recession market.
For success in today’s market, contact me today. Whether you are a buyer or a seller, I have the background and experience to guide you through today’s market!