Various factors have an impact on the real estate market and if you’re looking to buy or sell, keeping in touch with current market conditions is important.
Six months ago, the mismatch between the type of inventory of homes for sale and the demand of buyers in the US was causing the formation of two markets.
In the starter and trade-up homes categories, there were significantly more buyers than there were homes for sale, causing a seller’s market. In the premium, or luxury home category, the opposite was true as there was a surplus of these homes compared to the buyers that were out searching for their dream homes, therefore creating a buyer’s market.
According to the National Association of Realtors, the inventory of existing homes for sale in today’s market is at a 4.2-month supply. Inventory is currently 6.5% lower than this time last year, marking the 27th consecutive month of year-over-year decreases.
Looking at the latest report from Trulia, we can see that not much has changed, and in fact, recent natural disasters across the country have made inventory conditions even more dire.
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.
Nationally, buyers searching for starter and trade-up homes and are coming up short.
Premium homebuyers, on the other hand, have the best chance of less competition and more inventory of listings in their price range with a 14.7 point surplus, which is creating more of a buyer’s market.
If you are thinking about buying OR selling in Central Florida this Fall, give me a call or send me an email to discuss your scenario. 407-922-9011 | info@TonyDavidsHomes.com.