Friday, February 14, 2014
Monday, January 27, 2014
SUPPLY IS SCARCE
"How soon do you think we will see a bigger inventory? I've been looking for a while now and I haven't seen much of anything." Homebuyer
The relationship between supply of available homes and the number of active, qualified buyers ready to buy determines 'the market' balance.' This information is looked at locally by 'market area' including geographic, category of home or price bracket. This up-to-the-minute balance between 'for sale' and 'active buyers' impacts the real estate market and how it is currently performing whether you're a buyer or a seller or both.
Local markets are generally unique town to town rather than lumped together regionally or by geographic proximity or more general location but many times when you see data or even references to 'the market', the area is too broad to be helpful in understanding what's really going on and how it will affect your experience as a consumer. The balance can even swing drastically within a community between luxury homes, new builds and starter homes. This makes it tough for sellers to get accurate assessments on pricing their home and for buyers shopping several towns to make good side by side comparisons. With short supply, buyers are forced to broaden their search further.
An active Realtor who is involved in 3-4 transactions every month has a good sense of how the market is performing and not just the numbers but its complexion including underlying conditions and opportunities. They can give you valuable assistance screening, comparing, eliminating and choosing the right property for you.
While some 2014 facts and predictions including increased consumer confidence, fewer zero or negative equity positions for homeowners, rising mortgage interest rates and a decrease in affordability for many buyers may be accurate, none of them impacts a motivated buyer more than the answers to two questions buyers ask; "what's available for sale?" and "what will it cost?"
Supply PendingAndover 56 34
North Andover 58 27
Methuen 77 45
Wilmington 24 29
Reading 11 18
Boxford 44 14
These numbers tell six(6) distinct stories about Real Estate Market Conditions in adjacent towns.