Compared to 2011, inventory levels are down 51.5 percent. In April 2013, we saw inventory levels down 21 percent from April 2012. According to a recent analysis, total inventory across 38 major cities declined. As expected, the lack of homes on the market has pushed the list price per square foot of available homes upward.
This is really a sellers’ market and many buyers are facing difficulty with finding homes due to the lack of inventory. Prices are higher, and we are seeing all-cash offers as well as multiple bidding wars. While this is not as good news for home buyers, the lack of inventory benefits home sellers. Having fewer homes on the market increases buyer competition, and typically increases the value of homes.
It really is a great time to sell and you can create a bidding frenzy if you price your home right. If you are looking for a home to purchase, it is more important than ever to have a great buyer's agent to represent you throughout the transaction. The good news is that mortgage rates are still low and it is still a good time to buy. Many experts are predicting mortgage rates to increase through the rest of the year. Although buyers may not get the first property they bid on, they should continue searching for the perfect home!
Please feel free to contact me at (310) 717-1321 or JamieTian@RodeoRE.com if you have any real estate related questions or concerns regarding selling or purchasing your home. I would be happy to provide a professional estimate of your home value at no obligation or assist you in finding your dream home!