Friday, May 14, 2021

Spring Listings are Here, but not in Typical Numbers

That classic spring perk in listings has definitely happened, I am noticing more and more new listings showing up on the MLS. However there does not seem to be that heavy load of inventory that traditionally hits the market when the sun starts shine each spring.

Spring is also when many buyers come to market and they may be disappointed to find little options. That said, I feel like the spring rush of buyers is also a tad lackluster and that could be a blessing in disguise. Buyers have had a hard go of it over the last year, a little less competition might help those frustrated with the situation to finally get their home.

This is not to suggest that things are not tight, they are as tight as I have ever seen it. According to the data we are measuring inventory not in months or even weeks but DAYS! 12 days of inventory for the classic 3 bed 2 bath home in Clark County. Yikes! I ran a report on the local MLS showing the last three months of homes that are classic starter homes. Three bedrooms, two bathrooms with 1200 to 1700 SF. All across the county. Take a look at the results:

You may notice that the gap between new listings and sales did widen just a bit suggesting that a little extra inventory is now available. Maybe we can start using weeks agin to describe inventory in the next month or so. The second chart shows that the average list price is a tick higher than the average sold price. That shows market pressure is high. Remember most closed sales are 30 to 45 days behind the current market. A classic starter home in Clark County will set the buyer back about $400,000 that's just where we are right now. It is hard to see but the closed price is a tad higher than the list price showing that market pressure is getting sellers more than asking in general.

Buyers looking for a "deal" are headed straight to disappointment. Having an experienced agent that can guide buyers has never been more important. Some sellers are overpricing their homes and some are pricing to move. Buyers need to know when to be aggressive with the offer and when there is some flexibility in price. A house priced for quick sale will have multiple offers in the first day and likely be in contract in a matter of hours or a couple days. Overpriced homes will still get a lot of looks but may not get multiple offers or may have multiple offers under asking. 

Buyers are well advised to use a local experienced pro to help guide them through this process. Even the best and most experienced Realtor® can't guarantee their buyer will win the day, but the best agents can give sound advice to ensure that if you don't win the offer you are possibly better off without it. There are many strategies buyers can use and some agents tend to focus on just one. I like to give my buyers the full range of options with a cost - benefit analysis and a "pros and cons" approach so the buyer can feel optimistic that they may lose a battle but they will win the war.

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