Lowest Inventory this Century Susan Duncan Realtor
Have you heard the saying, “People want what they can’t have?” Well, this is true in the real estate market as well. Nationally, we have the lowest residential resale inventory we have had this century.
Economics 101 will tell you that it is all about supply and demand. When the supply goes down, the demand goes up.
Some areas of the country are expereiencing double digit appreciation, such as Nevada. Nevada had a 21% appreciation in Real Estate by the end of February. Bear in mind that Las Vegas, Nevada and Phoenix, Arizona were two of the hardest hit cities during the recession and therefore they are bouncing back faster.
Here, in the Asheville, NC area, we are seeing an appreciation rate of 5% during the first quarter of 2013, as compaired to a 3/10 of a percent appreciation in 2012 overall.
As homes are coming on the market, and the seller is choosing to price them reasonably, the homes are receiving multiple offers almost immediately and it is driving the price up over market value. Now this can be an issue if the appreciation happens too fast, because the comps that the appraisers are using are from within the last six months when the market was not as active and the comps are not justifying the contract price. This is merely a learning curve and it too will correct itself as the market has.
SO, if you have been “toying” with the idea of putting your home on the market, NOW is the time. This is a window of opportunity because the interest rates are still below 4%. By the end of 2013, interest rates are predicted to be above 4%. What is the big deal of 1% interest? Well, that subject we will save for another blog, another time.