By Chad & Sara Huebener
It's March, and fortunately it is starting to feel like spring! The market is reflecting that as well.
West Savage inventory is virtually unchanged from last month. There were 8 new listings this month, compared to 7 last month, and there are currently 22 total listings, down from 23 last month. However, there is a significant change that is good news - pending sales in West Savage have tripled in the past month. An increase in showing activity, offers, and sales are a normal reflection of spring market. We expect to see this number continue to rise in the next few months as relocation clients moving to and from our area will begin to sell (and seek) homes in alignment with the school year.
Foreclosures and short sales continue to be a driving force in the pricing of current inventory. Lower-priced homes in these categories are flying off the market as first-time homebuyers and investors snatch them up, while higher-priced homes in these categories remain a bit more stagnant. This is because of something we liken to a domino effect. The sellers on the lower-priced properties are banks, and not homeowners looking to upgrade. Therefore, the transaction essentially “stops” once the purchase is made. In cases with a buyer and a traditional seller, a “new buyer” for the marketplace is created once the seller vacates the home and purchases another. In this scenario, the dominos continue to fall…..
Our current absorption rate for West Savage is 8.46 months. This means that if zero new homes come on the market, it will take 8.46 months to sell the existing inventory. Sellers must continue to remain agressive in their pricing and condition of the home if they expect to see an offer in a reasonable amount of time.
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