The local REALTOR Associations are highlighting the positive: Buyers this year have far more homes to choose from than they did last year. Traditional inventory is rising, while foreclosure and short sale inventory is falling drastically. And our West Savage inventory is certainly reflecting that. With only 3 PENDING sales and 33 ACTIVE homes on the market this month, we are sitting at an all-time inventory high in West Savage, with 88% being traditional in nature.
Regardless of how they spin the stats, sellers are still wondering “where are all the buyers???” The truth of the matter is there are fewer, spottier showings in all price ranges, and little buyer urgency given the continuing low interest rates. We have a few theories as to the cause of the rising inventory and falling urgency.
- The pent-up demand that came out of the depressed market ran much of its course last year as buyers took advantage of historically-low interest rates at a time when pricing was still crawling out of the bottom of the barrel. It was the perfect storm of ideal buying conditions. And buyers bought homes like crazy in 2013.
- New construction in Savage is stealing a lot of the upper bracket ($400K+) thunder from existing properties. Many buyers fall in love with the shiny new penny.
- The price increases we saw last year excited many, who subsequently put homes on the market in the hopes of seeing that trend continue into this year.
- Economic uncertainties brought on by the upcoming election, ISIS and Ebola are causing a lot of stir.
The most important things a seller can do given these changing market conditions are to price the home appropriately, update as necessary and remain patient. One never knows what might happen, and it only takes one buyer to fall in love with a home.
This month, single family inventory in Savage has risen, townhome inventory in Savage has declined, and both single family and townhome inventory in Scott County (as a whole) have declined. The West Savage absorption rate is 6.18 this month. That means if zero new homes come on the market, it will take 6.18 months to sell our existing inventory.