Supply of Utah Homes
for Sale Struggles to Keep Pace
So
the market’s recovering, interest rates are low, and you think you’re finally
ready to buy a home? Not so fast. Buyers across the country are running into a
new roadblock: there don’t seem to be enough homes for
sale and buyers are finding homes sold old multiple offers on homes within hours of hitting the MLS.
Anyone
who has looked at entry- to mid-level homes for sale in Salt Lake County neighborhoods, probably knows what I mean. Mortgage rates
remain near historic lows, and as the prices of homes for sale continue to
rise, fears that we could soon see a repetition of a real estate equity loss
seem increasingly unlikely.
Why
the lack of inventory? There are several reasons. Buyers may be ready to buy
again, but some sellers are still not in a
position to offer their Utah homes for
sale. When the housing market collapsed seven years ago, some homeowners’
equity loss was such that they remain unable to sell. Prices may be on the
rise, but some need more time to return to pre-crash values.
Buyers
always want to buy at the bottom, but sellers want to avoid selling there.
Buyers are watching that bottom fade into the distance, but some sellers,
pleased to watch their homes growing in value, are content to wait longer.
NAR
says that there were just 1.93 million existing homes for sale on the national
market in March, down nearly 17% from the prior year. In a well-balanced
market, what had been a six month’s supply fell to just 4.7 months’ worth. Nationally, homes for sale now stay on the
market for just 62 days, down from a median of 91 days only last year. Glenn
Kelman, CEO of an online national real estate brokerage, put it succinctly:
"Somebody rang a bell and said the boom is back, and nobody wants to be
late to the party."
Homeowners
who have been thinking about selling are increasingly liking what they see in
today’s market — including the prospects for trading up. Even those whose
previous evaluations were unsatisfactory are finding it worth another look.
If
you would like to find out what your home is worth today, give me a call!, I'd be happy to research and provide a free CMA on your property. To search for homes, go to www.Homes4SaleUtahRealEstate.com.
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