Still a Seller’s Market, Balance Returning

Low inventory could slow sales long term

We continue to struggle with far too little inventory to meet the strong buyer demand, which in the long run will slow sales gains. A variety of factors are at play here. New home construction has been hampered over the past several due to tight credit, land and labor and the cost of materials, at a time when foreclosure sales have dropped. Gradually, we’re seeing some new listings come on the market with promises of more to follow in the weeks ahead as rising prices allow prospective sellers to recoup more of their investments. Only time will tell whether it will be enough.

Although, this is still a strong seller’s market – make no mistake about that. Properties are still getting multiple offers, just not quite as many per home as they had before. And many properties are still selling over the asking price, but perhaps not as wildly over, subtle signs that the frenzied seller’s market may be starting to come back into more balance. If so, that can only be good news in my mind as we move back to a healthier equilibrium between buyers and sellers.

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