Deprecated: Optional parameter $post_types declared before required parameter $location is implicitly treated as a required parameter in /home/bigforkm/shortsalesellit.com/wp-content/plugins/monarch/monarch.php on line 3783
Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture | Kris and Kimberly Darney

Kris and Kim's Blog

Great Stuff on Interesting Topics
Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture

Inventory Mismatch Paints a More Detailed Picture

Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture. Inventory of existing homes for sale was recently reported to be at a 3.6-month supply by the National Association of Realtors latest Existing Home Sales Report. Inventory is now 7.1% lower than this time last year, marking the 20th consecutive month of year-over-year drops.

Historically, inventory must reach a 6-month supply for a normal market where home prices appreciate with inflation. Anything less than a 6-month supply is a sellers’ market, where the demand for houses outpaces supply and prices go up.

As you can see from the chart below, the United States has been in a sellers’ market since August 2012, but last month’s numbers reached a new low.

A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture | MyKCM

Inventory Mismatch Paints a More Detailed Picture

Recently Trulia revealed that not only is there a shortage of homes on the market in general, but the homes that are available for sale are not meeting the needs of the buyers that are searching.

Homes are generally bucketed into three groups by price range: starter, trade-up, and premium.

Trulia’s market mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”

The results of their latest analysis are detailed in the chart below.

A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture | MyKCM

Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, leading to a highly competitive seller’s market in these categories. Ninety-two of the top 100 metros have a shortage in trade-up inventory.

Premium homebuyers have the best chance of less competition and a surplus of listings in their price range with an 11-point surplus, leading to more of a buyer’s market.

“It leaves Americans who are in the market for a home increasingly chasing too fewer options in lower price ranges, and sellers of premium homes more likely to be left waiting longer for a buyer.”

Lawrence Yun, NAR’s Chief Economist doesn’t see an end to this coming any time soon:

“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range.”

Bottom Line

Real estate is local. If you are thinking about buying OR selling this spring, let’s get together to discuss the exact market conditions in your area.

Kris and Kim Darney – REALTORS® – Grandparents – 714.657.6634
It’s Thursday!  The Best Day to List Your Home

It’s Thursday! The Best Day to List Your Home

When it comes to listing and selling your home, a recent study by Terrace 24 Realty out of Atlanta (the Right Coast) determined that the best day to list your home was Thursday.  Terrace 24 has determined that homes listed on Thursday often sell faster and for higher...

California Sees Largest Decline in Short Sales in Nation

California Sees Largest Decline in Short Sales in Nation

It seems like the housing crises would never end...and it seems that CoreLogic states that we will see distressed property sales for at least another 4 years...about 2020. However, I think this is what we predicted in 2012...about another 8 years back then...so we're...

Sprawling Placentia Ranch Now for Sale in The OC

Sprawling Placentia Ranch Now for Sale in The OC

Welcome Home! This charming single level ranch style home is a corner lot in a desirable neighborhood. As you step into the home, your buyers will realize an open living area with views of a spacious rear yard. This home offers a formal living room and dining room with ambiance of a shared fireplace.

Is There Humor in Real Estate?

Is There Humor in Real Estate?

Sometimes you just need to laugh. Realtors are too serious.  Our lack of a humor is contagious...just attend our local Friday caravan and you'll understand what I mean. I guess it's the stress of not knowing when your next paycheck is going to arrive that get's agents...

Pin It on Pinterest

Shares
Share This