Low Inventory of Homes For Sale is Fueling a Spring Market This Winter!
In my 33 years of selling real estate in the Capital Region, I’ve often heard from sellers that they want to wait until spring to list their homes for sale.
They have their reasons!
- Their properties “show” better when it’s green and things are blooming.
- There are more buyers looking in the spring.
- No one looks in the winter due to weather conditions.
- No one wants to move in the winter.
All these things are said with the intent of positioning their properties to get the “best” price. That’s because, in normal markets, spring is a time when there are more buyers. And when there are more buyers in the market, that means more money for sellers.
This makes sense. The law of supply and demand is always the economic fundamental to getting the best price. The greater the demand than the supply, the prices will be higher.
Here’s The News: We Are Not in a Normal Market
At the end of January 2023, there will be fewer than 1700 homes on the market in the Capital District. This is in stark contrast to the average of 2,500 homes that are on the market during normal conditions.
In fact, this is the lowest inventory ever in the last 10 years or so. Yet demand is at record highs, fueled still by the after-effects of the COVID pandemic that accelerated home sales and home prices. Along with resale inventory being scarce, new homes are not being built at a pace to keep up with demand.
Another twist is that interest rates, which the Federal Reserve escalated in 2022 in an attempt to combat inflation, have recently come down. This has brought buyers sidelined by higher rates back to the market, and they are grabbing what they can.
A Window Has Opened For Sellers To Get Top Dollar This Winter
This has all contributed to the “new” spring market that is here right now. This can change quickly if the Feds raise interest rates again, putting mortgage qualification beyond the reach of some, and making cash buyers more reluctant to take on risk.
I will be honest. After 33 years in real estate, I really thought that the market would have crashed by now. That was what was predicted and market conditions seemed to be heading that way. But now we’re seeing a market continue to offer very little inventory, making it difficult except for the very best agents to survive.
This is another market in which the strong and experienced that have been through the previously challenging cycles not only survive but thrive. That’s what The Scott Varley Team is well positioned to do. We’re tracking trends and working minute-by-minute with hundreds of clients.
And right now, market conditions are incredibly favorable to sellers. The switch to a buyer’s market as predicted has failed to materialize. The spring market is here right now – and it’s a good one. So anyone who thinks it’s time to get top dollar for their home, reach out to The Scott Varley Team today.
