It has become increasingly obvious that the upsurge in home buyers has led to a deficit of desirable homes on the market. Low home prices combined with dropping mortgage rates have motivated many people back into the buyer’s market; unfortunately, homeowners have not followed suit, creating a gap between what buyers want and what’s available for purchase.
According to a recent survey by real estate brokerage Redfin, many buyers are frustrated with the lack of available properties(Wall Street Journal). They are ready to buy, have their financing approved, but simply can’t find the home that they want. Of the 1,200 home buyers surveyed, 6 out of 10 people stated low inventory as their primary concern in purchasing a home right now. It is not simply an issue of buyers being unhappy with the options; compared to last year, there are 20% fewer homes currently for sale. Additionally, 7 out of every 10 buyers faced competing offers when they put offers in on homes that they were interested in.
Although buyers are feeling stressed over the changing housing market, sellers are beginning to celebrate. Not only are their homes selling quickly, they’re often receiving multiple offers for full asking prices. Basic supply and demand helps sellers realize that housing prices are starting to rise, prompting more of them to be open to listing their houses for sale now.
This housing draught is also what gave rise to the Shadow Market, which I blogged about in April of this year. The shadow market continues to exist as motivated buyers request that there real estate agents contact non-listed houses to find homeowners who might consider selling if the price is right. For many home owners, the incentives to sell as the market crashed simply did not exist. From buyer’s struggling to get financing to low home prices, if a home owner didn’t have to sell, they didn’t. However, the market is an ever-changing entity and already we can see sellers responding to the influx of buyer’s searching for their dream homes.
If you live in the East Lansing or Greater Lansing areas of Michigan and have been considering placing your home on the market, now is a great time. As an East Lansing realtor, I can help match you with a buyer quickly. Likewise, if you’re intending to buy a home in East Lansing or the Lansing area, please get in touch with me at MyRealtorRob.