Housing inventory dropped 8.5% over the last year as of 2Q 2017, the 9th quarter in a row of this decrease in the number of available homes. Buyers are buying homes the fastest time on record since tracking began in 2012. When supply is down by 20% compared to five years ago, it is normal to expect demand to respond in normal economic fashion. Today, only 47% of homes stay on the market longer than 2 months.
Of course, the decrease in supply has lead to the expected economic consequence of raising prices. Homes are becoming less affordable, especially for first time homebuyers. While there is not much you can do to influence the economics of the market, below are three steps you can take to be able to play the game successfully.
Before you begin to search, talk to your mortgage consultant and a Realtor. In a highly competitive market, it’s important to be prepared. Homebuyers who begin their home hunt with a pre-approval in hand are able to act fast, resulting in an accelerated time table. The most prepared buyer’s readiness is often more attractive to sellers, putting the proactive buyers at an advantage.
Have a Plan
Whether you’re a first time homebuyer or a homeowner looking to sell your house, creating a timeline model is a great way to plan your success. With clear expectations and a calendar, your lender and Realtor can help make your journey as smooth as possible.
Rely On Your Teammates
Your Realtor and your mortgage lender are on your team, and ready to help you find the best home and financing plan that takes your needs and desires into account. While buying a home can seem like a daunting task, we know that it doesn’t have to be. It’s all part of what we call The Benchmark Way.
* Data and information sourced from Trulia https://www.trulia.com/blog/trends/inventory-q2-2017/ accessed on July 21, 2017