The housing market, which has struggled with an oversupply of homes for years, faces a new problem now: a lack of attractive inventory.
There were more than 2.19 million homes listed for sale at the end of September, down 20% from a year earlier, according to a new report from Realtor.com. That is the lowest level since the company began its count in 2007.
The report is indicative of how the U.S. housing market just can’t seem to catch a break. While falling inventories normally are a sign of health, because reduced competition can boost prices, that isn’t the case right now.
Instead, people are pulling their homes off the market rather than try to sell them at today’s discounted prices. At the same time, banks have been more slowly moving to take back properties through foreclosure ever since processing irregularities surfaced last fall, temporarily reducing the supply of foreclosed properties. The shrinking supply isn’t driving up prices because demand is soft.
The drop in inventory also suggests there are fewer opportunities for buyers and sellers to make deals. That can further chill sales, as buyers become afraid to overpay while sellers are similarly cautious about underpricing their homes.
The Realtor.com data include only single-family homes, townhouses and condominiums listed for sale on more than 900 multiple-listing services across the country. They don’t include unsold homes listed as “for sale by owner” or other properties that don’t find their way onto the multiple-listing services.
Mortgage rates have fallen to their lowest levels in decades, but demand remains weak and credit standards tight. According to the Mortgage Bankers Association, mortgage applications for home purchases were 3% below year-ago levels during the first week of October.
While it’s a good time to buy a home, it’s a brutal time to sell. So it may pay to make your home look its best. One way to do that is via staging…
Have you ever staged a home for sale, or know of someone who has? We’d love to hear how it went? Just use the comment link below to tell us about it.
If you’re selling a home, you’re probably considering a real estate agent. Then again, you might be thinking how much you might save by selling your home yourself.
Real estate agents have their good points, and selling a home privately is not for everyone. Before you try, make sure you read the following tips.
Should I use a real estate agent?
There are many benefits to using a professional real estate agent. First of all, real estate agents are professionals. They have training in how to market and sell your home. They can advise you on realistic prices, help you make deals, and provide general expertise.
Real estate agents also network among each other. They have access to online and offline advertising you won’t be able to use, which means they can sell your house more quickly and expose it to more people. Also, if someone approaches a real estate agent looking to buy a house, they are less likely to contact someone selling as a for sale by owner (FSBO) unless they are working as excluisive buyer agents — they will network with each other to maximize fees.
So using a real estate agent probably means your house will sell more quickly and efficiently. If you’re in a hurry, this might not be the time to mess around with private sales.
If, on the other hand, you have plenty of time, it can’t hurt to put your house on the market privately first — you can always contact an agent later if it doesn’t sell. You’ll save money on real estate fees and be able to offer your home at a lower price since everything you collect will be profit.
However, keep in mind, if a home is on the market for a long time as a FSBO, then you list it, it does take away some of the newness of the listing in the fact that it’s already been for sale for some time.
If you decide to go it alone, be sure to ask a realistic price, advertise everywhere you can, and tell everyone you know that you’re looking to sell.
If trying to sell a home, it’s always a good idea to talk about ‘presentation’ (how your home will look to prospective buyers when they walk through) with your real estate agent, or, if selling by yourself, consider a home stager…
Questions or comments abot this video? We’d love to hear from you. Use the comment link below to leave us your thoughts.