This is one of the busiest times of the year for home sellers. More homes will be sold in the next two or three months than any other time of year. How is rising inventory in our market affecting what buyers and sellers should do?
Inventory always grows in March and significantly rises in April and May, which is why it’s always a great time for buyers to buy property in the spring and summer months. As inventory rises and buyers have more options, the demand for property falls, homes take longer to sell, and buyers have more options.
Currently, there are two types of sellers on the market—those who’ve already decided to list their home and those who previously had no intention to sell but are being tempted to do so by favorable prices.
For example, I recently sold a home in a neighborhood in Irvine which was probably worth somewhere between $515,000 and $520,000 for $551,000. That was a record price for that neighborhood, and a couple days later, I got a call from the next-door neighbor of that seller. They told me they hadn’t planned on selling their home, but if I could get the same price for their property, they’d be interested in putting it on the market.
The emergence of both of these types of sellers is what’s causing the rise in inventory. If you’re a buyer, get pre-approved and understand what you can afford so there’s no confusion about what your monthly payment will be and what price point you should focus on.
The good news is it’s a great time to be a buyer. Buyers were getting bullied around in winter, but we should see that trend shift. You should have more properties to look through and more time to make a decision.
If you’re a seller, make sure you price your home the right way. Your initial list price should be in line with what the market is telling us. Have you and your Realtor done your research? What have homes in your area sold for in the past? What does your current competition look like? Without knowing what’s going in your local market, you won’t be able to price your home to sell.
The market is shifting a little bit, but the mindset of most sellers and their agents hasn’t shifted. These people are still pricing their homes optimistically as if we were still in January, February, or March. That market changes on a monthly basis, though, and we’re entering a whole new one.
If you have any questions for me or you’re looking to buy or sell a home, don’t hesitate to reach out to me. I’d be happy to help. Until then, happy selling!