National Association of Realtors Confirms it-It is a Sellers Market!

A lot of people don’t realize it but there are formal definitions for such things as buyers market and sellers market in real estate.  A sellers market in real estate is defined as less than 6 months supply of housing inventory, while buyers market is greater than 6 months supply.  The local Indianapolis market has been a buyers market for a long time-literally years, but that has changed now.  The implications for buyers are significant.  Look for bidding wars and low inventory. Even the New York Times is saying that in time like these, you better hire a “savvy broker”.  See below for the report from NAR. 

 

National Market Review: Tight Inventory Defining National Market

Data released from the National Association of REALTORS® (NAR) late last week points to slightly increasing sales numbers for January and tight inventory situations in many parts of the country. According the January data, existing home sales increased just 0.4 percent. 

Total housing inventory at the end of January fell 4.9 percent, which represents a 4.2-month supply at the current sales pace, down from 4.5 months in December, and is the lowest housing supply since April 2005 when it was also 4.2 months.

NAR chief economist, Lawrence Yun said tight inventory is a major factor in the market. “Buyer traffic is continuing to pick up, while seller traffic is holding steady,” he said. “In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.”

admin
No Comments

Leave a Comment: