Real estate buyers should be prepared to move quickly in our current market, with properties selling an average of a week faster than this time last year.
Limited inventory is driving today’s real estate market. The supply of properties for sale is 38 percent lower than the high we saw in 2011, and 5 percent lower than just 12 months ago. With fewer options, buyers are moving quickly to close deals. Just last month Zillow Real Estate Market Reports stated the average U.S. home closing is down to just 78 days.
Those 78 days include the time it takes for a property to be listed and to go under contract. In reality this means that properties are going under contract within a month of being listed. In fact, the time a property stays on the market before going under contract has been steadily dropping since 2010, when the average was five months to sell.
Low inventory and fast moving buyers have created a very competitive real estate market, most noticeably for buyers looking for less expensive properties. While the top third expensive properties still see action, the lower priced properties are moving at a record pace. This competitive market is also driving the lower end properties higher in price. The average U.S. home is now worth $187,000, which is 5.4 percent higher than June of 2015.
According to Zillow Chief Economist Dr. Svenja Gudell, “If you’re looking for a home, be prepared to move quickly. Adding to this difficult buying environment is low inventory – there simply aren’t many homes to choose from. Until supply increases, it will remain a tough market to find a home.”
For buyers in such a competitive market, it is even more important to work with local professionals with expertise. With over 22 years of experience in our local market, High Country Properties is here to share knowledge and make sure that you get a deal you can be happy with.