by Michael Perna
on Tuesday, September 3rd, 2019 at 5:43pm.
Supply is down and demand is up in our market this September.
Every year around September, the market tends to get a little sleepy, but is this still true for the market in 2019?
At the moment, it is for sellers. Over the first three weeks of August, inventory dropped 9.9%. In other words, one out of every 10 homes a buyer could choose from last month isn’t there anymore. Sellers aren’t bringing as many properties to the market, and I know exactly why. For one thing, they assume the buyers who weren’t able to move before the start of the school year are gone. Also, they assume most people don’t want to move during the winter.
The fact is, though, that money motivates. Interest rates have dropped significantly, and the Federal Reserve promised that they’ll drop once more very soon. Because of this drop, the number of mortgage applications for new purchases has risen 8.7% over the last three weeks. Traditionally, mortgage applications average a 15% drop during this period.
Between the drop in inventory and the spike in mortgage applications, we’re looking at almost a 20% discrepancy between the numbers of buyers in the market and the number of sellers. What happens when there’s less supply and more demand? Prices go up.
Just last week, our team had 11 sellers contact us wanting to put their home on the market. Sure enough, we paired them with our exclusive First Look program and our top-notch marketing, and all 11 of those properties sold in their first day on the market. They also attracted multiple offers and sold above their asking price with amazing contract terms.
What happens when there’s less supply and more demand? Prices go up.
What do I mean by amazing terms? We had a couple of buyers agree to bridge the price gap if the home didn’t appraise. We also had several who agreed to let the sellers live in the home rent-free for a month or so after closing so they had time to move.
We’ve seen some amazing buyers walk through our doors these last few weeks, but unfortunately, there just aren’t enough properties. If you’re thinking about selling, give us a call right now.
If you’re considering purchasing a home, the good news is that 60 to 80 properties come our way each month that eventually end up on the market, and we can grant you access to view these properties before they reach Zillow, Realtor.com, or the MLS.
If you have any other real estate questions or there’s anything else I can help you with, feel free to reach out to us as well. We’d love to help you.