Have you noticed that there’s not much inventory on the market? There also seems to be an extra number of multiple offers and bidding wars too. What happened?
Here in Orlando (Orange and Seminole County, graph above) the sales have dramatically increased over the last few months. Compared to the same quarter a year ago, the inventory is down 39%, and it shows Orlando has about one to two months of inventory on the market today!
Sales are great, but more sales + low interest rates + low inventory = a completely different market than a year ago.
When buyers scratch their heads and say “I thought this was a buyer’s market” I tell them, “it is, for your loan.” Interest rates are hovering around 4%. FOUR PERCENT! Tell that to my parents who purchased their home in 1985.
But back to the inventory…the selection for buyers is not nearly what it was, which gives power to the seller in a negotiation. [Side note: NOW would be a great time to put your home on the market if you are a seller]. Recently I’ve noticed that if a property is priced well, sellers are sticking close to their price because they know less options are available.
What if the home is overpriced? There will always be overpriced homes with sellers who have rose colored glasses on and listing agents who are too afraid to tell it like it is. If you find yourself in love with an overpriced home…talk with your agent and make an offer where you believe market value is. Your agent will do everything they can to bring reality into focus for the seller and listing agent. Even though your agent will go to bat for you and fight for the price you want, keep in mind, Realtors are not miracle workers…not all sellers are motivated, even if a good case is made for a particular price.
Now that you know what’s going on with the market…you can make smarter moves and do what you need to get the property you love. Happy selling everyone! If you have comments or questions on the market, feel free to contact me here.