Real Estate Watch – Halcyon Real Estate Services
That’s the most common topic of conversations among Poway real estate agents these days. Anyone listening in has surely heard it. But what does it really mean? Is this a good thing or a bad thing?
In real estate, low inventory means the total number of homes for sale has decreased, compared to the number of buyers, which is increasing. Specifically, there were 109 single family homes for sale in Poway in January 2016, compared to only 72 in January 2017, according to the San Diego MLS provider, Sandicor. That’s a huge decrease! This change in supply and demand resulted in an increased median home price in Poway from $572,500 to $659,800 for the same time period.
This is very good news for anyone who is considering selling their home this year. As long as there are few homes for sale, creating greater buyer demand than the supply of homes, you are likely to get your asking price, close to it, or possibly even higher. That means now is the time to sell!
But what about if you are hoping to buy a home this year? Does this mean you should wait? On the contrary, it means buyers should be confident that if they purchase a home this year, their investment will continue to increase in value. Waiting another year could mean paying significantly more for the same home. And with interest rates going up, your buying power will decrease.
Buyers need to be prepared, though. A market with low inventory frequently results in homes receiving multiple offers within the first week, so buyers need to know what they want, know how much they can spend, be ready to move fast, and get creative to make their offer stand out and get noticed. Buyers also need to have all their documents ready, proving they are able to close escrow, if their offer is chosen. First and foremost, buyers need to get pre-approved by a lender before they fall in love with a home. This can sometimes take a few days, during which time the home of your dreams could go into contract with someone else.
Bottom line, don’t wait.
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Halcyon Real Estate Services