Q: Why Is Inventory So Low in Our Market?
Here’s why inventory is so low in our market.
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It’s time for another market update, and today’s topic is inventory.
If you’ve been following the news lately, you’ve probably heard of how dramatically low inventory is in Utah, so I’ll give you a rundown of the latest statistics to clarify the situation and help you make a buying and/or selling decision.
At the beginning of July, inventory was 20% lower compared to July 2019. That’s a huge difference, and it’s also the reason you’re hearing about so many multiple-offer situations. Just this past week, I wrote offers for two buyer clients who were in the middle of a bidding war.
Why is this? There are more people looking for homes than there are homes available to purchase. It’s a seller’s market out there, so if you’re thinking of selling, give me a call. I’ll take a look at your house, update you on what’s happening in your micro market, and give you my advice on which steps to take.
It’s a seller’s market out there, so if you’re thinking of selling, give me a call.
Why is inventory so low? There are a couple of reasons 2020 has been something of a unicorn, so to speak. The first, obviously, is the pandemic. This didn’t cause buyers to stop looking for homes or shrink the buyer pool, however; people who need to buy a home are still out there looking. While the buyer pool stayed the same, the number of listings did shrink, which created the frenzy we’re seeing. All of these multiple-offer situations are frustrating for buyers, but now may be a great time to get top dollar for your home as a seller.
The second reason is that people are staying in their homes longer. Rather than dissuade buyers, these two reasons have created a perfect storm where buyers are even more motivated to get into a property soon, especially considering what’s happening with interest rates. That’s a topic for another video (coming soon!), but if you’re a buyer, just know that you’re facing a once-in-a-lifetime opportunity.
If you have more questions about our Utah real estate market or how you can take advantage of it, don’t hesitate to reach out to me. I’m here to help.