2016

Important Information for buyers and sellers!

If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.

Jonathan Smoke, the Chief Economist of realtor.com, in a recent article revealed that:
“Would-be buyers face a dilemma: There will be more homes on the market over each week of the next three to four months, but there will also be even more prospective buyers. We are entering the busiest season of home buying with the lowest amount of inventory in three years. To be competitive, buyers should get pre-approved for a mortgage and be ready to act quickly if they find a home that meets their needs.”

Smoke goes on to say:
“Listings are growing as they normally do this time of the year, but because demand has been growing faster than supply, homes are selling faster. So the monthly trend is the normal seasonal pattern, but the year-over-year decline is reflective of demand being stronger than supply for more than a year, which is resulting in fewer homes available and faster-moving inventory.”

In this type of market, a seller may hold a major negotiating advantage. With this being said, the buyer must keep this in mind while making an offer. You will want to put as few contingencies as possible into the offer. What does this mean? If you need financing, of course then there will be a financing contingency. And, I always recommend that there is a home inspection--especially if you are a first-time home buyer!

On the other hand if you are a cash buyer and have experience in what to look for when viewing a home, typically you will have no contingencies! Unfortunately for the first-time home buyer is in competition with these types of buyers and will loose out on that particular home.

Bottom Line
If you are looking to buy or sell a home, we suggest that you take advantage of our 40 years of real estate experience. We can help you get what you want in today's real estate market.

The Militello Team
Joe Militello (978) 815-3877
Kathleen Militello (978) 500-1480