Currently we have 2.5 months worth of inventory in the west valley. This
means that if no more homes come up on the market and buyers keep buying at the
same pace, there will be no more homes to buy in 2.5 months. However, real
estate is not static and more homes are consistently being added to our "For
Sale" list. (We have 2 great new listings today!)
This 2.5 months benchmark DOES indicate that we are in a seller's market.
Because of this lower inventory, sellers are able to push the pricing ceiling.
However, sellers must always keep their eyes on the actual sold prices in their
area if the house needs to be appraised. We have seen quite a few sellers reach
for the stars when pricing their homes only to have the values corrected when
the appraisal results arrive.
Mortgage Interest rates dropped slightly last week. Even if interest rates
rise slightly, there is a silver lining. Historically, when interest rates have
risen, more loan programs were created and more buyers were able to buy. The
number of loan programs available affects the number of real estate sales more
than a rise in interest rates. So sellers should not fret if rates do increase.
No comments:
Post a Comment