IS it a good time to sell?

The National Association of Realtors Existing Home Sales Report shows a shortage of housing inventory throughout much of the country. While at the same time, buyer demand seems affectedly up over last year.

Housing inventory in January fell 4.9 percent which represents a 4.2-month supply at the current sales pace.

This would indicate the lowest housing supply since April 2005.

Listed housing inventory is about 25 percent below a year ago.

So if you are selling a home, what’s it mean?

As everyone knows, the price of anything is determined by classic supply and demand. Looking at NAR’s report, inventory is at its lowest level since the early real estate boom, while demand is up.

Lawrence Yun, NAR chief economist, said:

“Buyer traffic is continuing to pick up, while seller traffic is holding steady. 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.”

So does that mean you should sell your house right now, or should you wait to see if prices rise? Although no one can say for certain, some feel there may be a repressed inventory ready to come on the market.  This is because as prices increase it frees up some sellers who were unable to sell as a result of negative equity (i.e., where their house was worth less than the mortgage).

Either way with smaller inventories, it certainly could help homes sell relatively quickly and for more profit, than previous years.  But as usual this would be contingent on and only if homes are priced accordingly to local market value conditions.

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