THE EXISTING-HOME SALES REPORTThe most important data revealed in this report was not actually sales
The report explained:
In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values (see below):
As we mentioned before, there is currently a 4.1-month supply of homes on the market, and houses are going under contract fast. 49% of properties were on the market for less than a month when they were sold. In August, properties sold nationally were typically on the market for 31 days.
Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market, and supply will fail to catch up with demand if a sizable supply does not enter the market.
If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers who are out there searching for your house to become their dream home.