3 Signs That You Should Make Your Move on a Home
Today’s housing market can be explained as crazy at best in most scenarios. There’s stiff competition among buyers and very few homes for sale. This has found several hopeful buyers in bidding wars and many are beginning to compete against cash offers. It is forecasted that in the near future homeownership will be less hard to attain.
When the average home sale is receiving fewer offers
Competition among buyers hit peak intensity in 2021. Numbers from July 2020 showed that the average home received 2.9 offers and in July 2021 they received 4.5 offers. Of course, these are just averages and there are many homes that receive less or more than this and some homes saw home offers in the double digits. As the market cools you will not be seeing several homes receiving 15 to 20 different offers for purchase. A steadier market may come up with just one or two competing offers on the home.
Homes have been on the market a little bit longer
Numbers showed that homes sold in July averaged out staying on the market for 17 days or less. According to large real estate experts such as the National Association of Realtors®, the measuring tool called “days on market” is a big indicator of the level of competition within any area. A 17-day average is a sign of a highly competitive market. In 2019 the nationwide average was 59.5 days on market, making a much less competitive atmosphere. If homes are beginning to stick on the market a little longer this is a sign that there could be fewer buyers looking at them. It is always good to look at this number in a neighborhood city or metro area not just at one particular home’s days on market to be able to get a feel for how competitive that area’s real estate currently is.
Inventory and supply are going up
In real estate, the term inventory means the number of homes that are currently for sale and any pending sales. The term supply in the real estate market refers to the number of months it might take to sell all of the homes that are currently listed within the market. The inventory and supply have been very low all across the country in 2021 so far making for a hot seller’s market where the homeowner has a higher leverage in negotiating the sale of the property. When inventory and supply numbers rise this means that competition has cooled down and there is more leverage on the buyer’s side.
There are several different factors that you can look at to determine if a housing market that you are interested in is cooling down as far as competition amongst several interested buyers goes. The best way to look at these numbers and decipher what they mean in a particular real estate area is to talk things over with an experienced local real estate agent that has made it their job to know these numbers on a regular basis and be knowledgeable of the most up-to-date information in the market in which they work.
NTREIS data last updated February 4, 2023.