In the current real estate landscape, a prevailing issue is the scarcity of inventory. This shortage affects both buyers and sellers in distinct ways, presenting a series of pros and cons for each party involved.
Sellers stand to benefit from the low inventory environment. With fewer properties available, sellers may find themselves in a position of increased leverage. The scarcity of options can create a sense of urgency among buyers, leading to quicker sales and potentially multiple offers on a single property. However, buyers are more savvy then ever, and will not be fooled into over paying for a property that has an inflated list price. PROPER PRICING IN THE BEGINING IS KEY. However, despite these potential advantages, sellers also face certain drawbacks in a low inventory market. One of the most significant challenges is the difficulty of finding a suitable replacement property. Sellers who intend to sell their current home and purchase a new one may struggle to find options that meet their needs, particularly if they are looking to relocate to a high demand area.
There is a possible twist to the story this year. A December survey by Fortune magazine saw a substantial increase in the number of home owners ready to sell in the next 12 months. They believe this uptick is caused by an eagerness to get back into the market and to take advantage of pent-up demand. While we don’t have a crystal ball, this could be a “sweet spot” for sellers because if inventory goes up, it may be easier for them to find their next home. Another factor in this coming market, it what is being coined as “Silver Tsunami” 80% of adults over the a age of 50 are home owners, and now the baby Boomers have surpassed the millennials to become the largest generation of home buyers. The youngest Bombers are beginning to retire and this could also see a significant increase in sellers. I’m happy to talk about all of this and more. Call me anytime for creative options and custom analysis of your home.