There are a lot of factors making homeowners cautious who may be thinking of selling their homes at the tail end of 2019. A quick look at the numbers from 2019 shows the August and September inventory of homes for sale nation-wide fell to the lowest levels since June 2019. The primary concerns contributing to sellers’ cautions are home prices (both on the selling side and buying side considering they have to buy a new place when the present home sells), and the fears of a potential market crash in 2020.

As we come to the end of the year, inventory typically drops due to family matters where people don’t want to go through the process of selling when the weather is cold and rainy, plans for the holidays regarding potential family travel, money spent on gatherings with friends and family, and the Christmas budget possibly being impacted by the potential costs of selling a home.

Winter is a great time to sell if you are willing to take the cut in price that the market typically sees this time of year. The upside with low inventory is that your home will stand out in the market. People hunting Zillow and RedFin for their next place will see your home more easily without having to wade through a sea of homes on the market which may happen in Spring and Summer.

Serious buyers are still looking even though the market has less inventory. And, astute buyers are looking for a deal knowing the market cools this time of year. Serious and smart buyers are a good thing to have when inventory is low because they will want to make an offer on a home that is priced correctly. With good advice from a real estate professional, serious buyers will not low-ball every home on the market in winter, but rather look at realistic market expectations, and make fair market offers with a hint at trying to get a deal.

Let’s look at how inventory will be effecting those buyers and their decision-making process.

Inventory on the market today is low, especially among existing homes in the entry and middle-level tiers of the market. It’s hovering well below the 6-month supply typically found in a more normal market, as shown in the graph below: With inventory being one of the biggest housing market challenges today, finding a starter home right now isn’t easy. According to the Q3 Housing Trends Report from the National Association of Homebuilders (NAHB), 68% of those searching for a home think their search will get harder or stay about the same over the next 12 months.

The same study reveals,

“In Qtr3’19, buyers actively engaged in the process of buying a home are more likely to have spent at least 3 months searching (58%) than a year earlier (55%).”

This is certainly no surprise, given the current inventory status. So, what’s the good news? The NAHB continues to say,

“If still unable to find a home in the next few months, the next step for most long-time searchers is to continue looking for the ‘right’ home in the same preferred location (52%). The next step for 35% is to expand their search area and for 16% is to accept a smaller/older home. Only 15% will give up looking.”

What does this mean for homeowners?

If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t planning on giving up anytime soon. The majority of potential buyers who are still searching for their dream home are eager, willing, and ready to buy.

The historical data shows that homes in Yamhill County, OR have increased over the last three years, even though the last few month of 2019 have seen a decrease in local pricing. So, even though the 2019 market has cooled, being able to take a lesser price doesn’t mean you will lose on your investment. The numbers are clear that homes in 2019 have risen. If you have owned your home for more than three years you are potentially winning with a sale in winter.

Bottom Line

With buyer demand as high as it is today, and inventory in the entry and middle-tier markets remaining low, it’s never been a better time to move up. My question is, “How can I help you today?” Let’s get together to talk about your real estate plan. I’m here is help advise and guide you along that journey, and help you build a team around you so you can have your own team of real estate advisors so you can execute your individual plan to reach goals.

Even if you are not planning a real estate purchase or sale soon, I want to help you in any way I can with your present situation. Check out our home value analysis for the specific possibilities on your home, and check out our recent Market Update for your area to give you a general look at what’s happening in your city.

I appreciate you looking us up, and letting us be your information source for anything you may have a question on or need help with. We love people, and we love properties. Just reach out and call us at (503) 799-8354 to get answers to your questions.

Cheers,

Michael Jester
Oregon Licensed Real Estate Broker
My Real Estate Advisor Team
(503) 799-8354 cell
(503) 437-9005 office
michaelj@myreateam.com

Bella Casa Real Estate Group
207 NE 19th Street, Suite 100
McMinnville, OR 97128
(503) 437-9005 office
https://thebellacasagroup.com