Sometimes the more you say something the more you believe it to be true. If numbers don’t lie then let’s take a look at what actually happens year after year. From the graph you can see that the inventory levels swell significantly each spring, however the level of sales does not increase as much as the new inventory level leaving a large gap between sales and new inventory. The closer we can get the new inventory level and the current sales level to meet we have a very healthy market. Year in and year out the same trend persists. Several questions come to mind with this trend and there are two groups of people that can take advantage of this information—sellers and buyers.
Let me explain. If I were a serious seller I would rather be on the market when there are fewer homes on the market. If I am priced correctly, regardless of market, my home will sell. Here comes the tricky part. A good deal of the “swollen” inventory is from sellers who are thinking about selling but are not serious about correct pricing and thus their price is generally higher than the market. This is why they wait until spring to list their home. They are more fickle than committed sellers. If I have to compete with these folks then it is incumbent on me to be very accurate. Later on in the year, when most sellers think the market is bad we actually see just the opposite. The level of sales reaches to the level of inventory—a very good thing, and as a seller the fewer homes I have to compete with is always better.
Does this benefit a buyer? Wouldn’t I want more homes to compare to than fewer? Yes and No. Let me address the yes first. As a serious buyer do you want to spend time looking a wide variety of homes that are not realistically priced with sellers who will not sell them for the true market value? Probably not. And as a buyer would you rather compete with 5 other buyers or 15 for the inventory? Today’s buyer, just like the seller, does not want to compete with a surging supply of buyers.
From my experience of selling homes for the past 24 years, I can say with accuracy that most of my January’s are better than my July’s! In July school is out, the family is off on a vacation and house shopping is for another day. In January serious buyers are out looking at homes. If I were a seller I would rather sell my home in the “off-season” than in July when everyone is off for the season.
Now the numbers bear out what we have experienced for the last few decades. If you are serious about selling your home there is no better time than now.
Posted by: Glenn Hanon
Tags: current housing market, glenn hanon, home seller advice, living in southeastern wisconsin, market advice, real estate advice, real estate market, real estate opportunities, real estate trends, seller tips, wisconsin lifestyle, wisconsin real estate