Things to Know Before You Buy or Sell
Do your summer plans include buying or selling a home? Be sure you understand the temperature of the market before you make any big moves.
Is it a Buyer’s Market or Seller’s Market?
Spring and summer are the most popular times for buying and selling. Most people want to make their move while school is out for summer vacation or while the weather is nice, so it’s typical to see a good supply of new listings come on the market at this time. While we’ve started to see an increase in housing inventory in recent months, the country is still far behind what’s considered a healthy balance. In 2018, the average national inventory was at a 3-month supply[2], making it a seller’s market.
Keep in mind that housing inventory varies widely from market to market, so talk to your lender to get a better idea of the housing climate in your area. You can calculate the housing supply in your region by dividing the number of homes for sale by the number of homes sold in a given month. For example, if 3,000 homes were for sale last month but only 1,000 sold, that would equal a 3-month housing supply (or seller's market). The good news is, experts expect housing inventory to expand this year. For instance, Realtor.com® Chief Economist Danielle Hale expects inventory growth of about 7% in 2019.[3] While we may not make it to a healthy 6-month supply this summer, prospective homebuyers can take comfort in the fact that more inventory is on its way.
[1] National Association of Realtors®, 2018 Profile of Home Buyers and Sellers.
[2] Redfin, Home Prices, Sales & Inventory, January 2018-December 2018.
[3] Realtor.com® 2019 National Housing Forecast.