Just like last month – the inventory is at all time lows (not enough homes for sale) and the market is NUTS. That means – every decent listing is escalating and getting multiple offers. “Yay” for the sellers and so sad for the buyers. I think any seller who wants to maximize their profit and sells without going on an active market is making a mistake – the are SO MANY buyers out there willing to pay more and wave all contingencies.
Take a look at this chart – here’s a 2 year period and level of “months of supply”. This is a chart that tells us the supply and demand of real estate and which way the market is leaning. We have less than 1 month of inventory – so if no new homes come on the market – it would take less than 1 month to sell the remaining inventory. In Arlington we need at least 2 months, and ideally 2.5 months to have a more balanced market.
Average days on the market were 9!!! So low! This is a 2 year comparison.
Available listings are at all times lows – here’s the available listing chart for the last 10 years.
Average sales price is going up – as seen in this chart.
When this madness will be over? I don’t know. When Amazon expanded in Seattle – they were reaching an average 10% appreciation every year since 2013. It dropped last year to 6.9%. Click here to see the appreciation graph prepared by fhfa.gov.
I think we will be in this market for a while – so buckle up. And yes – you do need guidance to win in this market – sellers and buyers. For sellers to maximize their profit and navigate the madness and for buyers to win in this madness of multiple offers.