Wednesday, October 16, 2019 / by Heather Schelling
Market Update: Week of Oct 14th – Oct 18th
You may hear lots of discussion about Months of Inventory but what does that mean to you? Whether you’re buying or selling, it’s an important piece of data to consider. In short, it means that based on the current demand, if nothing new comes on the market, in X months, all inventory will be sold. To clarify, we’re referring to stick-built (vs manufactured) homes in Spokane County, under an acre, and listed with a Realtor. A healthy market is between 5-6 months. If the months of inventory is less than 5 months, it’s considered a Sellers’ market. If it’s over 6 months, then it’s a Buyers’ market. It’s based on the rule of simple economics: supply and demand. The lower the supply, the higher the demand and conversely, the higher the supply, the lower the demand. Why is this important? In real estate, that translates to what you’re going to pay when buying or what you’re going to get when selling a home.
This week of Oct 14th-18th, we’re continuing to see extremely low inventory of 1.2 months in Spokane County. The number of active listings is down by 84 and the number of new listings is down by 49 from the previous week. This data supports our trend of low inventory. Less listings and less available listings will continue to reduce the number of available homes for buyers. It’s a definitely a very strong Sellers’ market. Another important factor is the number of homes sold. In the last 30 days, 35 more homes have sold than the previous 30 days. The demand is clearly not letting up anytime soon. If you’re trying to purchase a home, you’ll need to be patient and realize that you may have to put in several offers before one is accepted. Thinking that you can negotiate or refusing to compete in a multiple offer situation might leave you empty-handed.
If you’re trying to purchase a home, you’ll need to be patient and realize that you may have to put in several offers before one is accepted. Thinking that you can negotiate or refusing to compete in a multiple offer situation might leave you empty-handed.
If you’re thinking about selling and want to maximize your opportunity to get the most of your current home and still be able to find another home without feeling trapped or forced into selling, have your Realtor let you know when our market has about 3 months of inventory.
Either way, knowing the market will help arm you with tools to make a good decision.
Until next time!