Spike in Supply Lately…Why?

As the chaotic summer comes to an end, and rates begin to dip at the same time, we have seen a spike in supply. The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year. This increase we believe is of course due to the drop in mortgage rates, something that has been long awaited for both buyers and sellers alike, but also the rush of people looking to complete a move before the election–the fear of uncertainty.

What Does This Mean If You’re Looking To Buy a Home?

This is good news for buyers of course, there’s more opportunity! And, any increase in supply allows for prices to be a bit more flexible for buyers as the gap between demand and supply begins to shrink (but still has a ways to go). However, we are not here to give you false hope. Rates have been ticking up slightly in the last few weeks, and with the election quickly approaching, along with holidays, that peak in supply is likely not going to last. In our current market, mortgage rates have the biggest influence on homeowners’ decisions to sell. 

Why Buy Now, Rather Than Wait?

Currently at the moment, there are more homes to choose from right now, and you know what the market is currently, there are no surprises you will face. Waiting however could lead you to a few. Also, home prices are projected to only keep climbing throughout the next few years, so the longer you wait, the more expensive your next home will be. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”

Bottom Line

This fall is a great time to sell and/or buy with the dipped rates. The best way to be prepared to buy or sell a home is to have a trusted advisor, like Jim Slater, to constantly inform you on the status of the market and what is currently available. Contact Jim Slater today at 612-590-1802 to begin that relationship so you are ready when the time comes for you.

Source

Coldwell Banker Realty