We Are Living in Both a Robust and Stagnant Real Estate Market
I was just reading the statistics for August 2017 on the NWMLS, and once again, it has been confirmed that the available inventory is down 13% from August 2016. Real estate agents in the area have reported both a simultaneous stagnant and robust sales experience for their clients.
It's a robust market in areas where the business and jobs are more centrally located. It's in these neighborhoods where the home pricing tends to be higher. People want these homes and are willing to pay for it by outbidding each other to win the home. There are multiple offers on the home, and the seller will be choosing from many offers that include escalating pricing (process where buyers outbid each other) and waived contingencies.
So, how can the market be both robust and stagnant? Well for one, the aforementioned inventory availability doesn't allow many buyers to buy a home or a condo. Even the condominium's inventory has gone down 25% from this time last year.
There is only a total of 1.55 months of inventory on the market. That means, at the current rate of sales, it would take 1.55 months to sell every home that is active in the NWMLS inventory.
Another reason the market is "stagnant" is because, buyers these days are becoming more savvy. Buyers won't blindly put an escalated offer on a home without doing research, particularly if they are guided by a seasoned real estate professional. In today's market, if the home is overpriced, the sellers will not get offers - they also won't even get showings.
If you have questions about the market, pricing or strategy, feel free to reach me at firstname.lastname@example.org.