Six months ago, it was reported that the mismatch between the type of inventory of homes for sale and the demand of buyers in the United States were making two different markets.
For the starter and trade-up home categories, there were alot more buyers than there were homes on the market, causing a seller’s market. While in the premium, or luxury, home categories there was a surplus of these homes compared to the buyers that were out looking for their dream homes, which created a buyer’s market.
According to the National Association of Realtors latest Existing Home Sales Report, the inventory of existing homes on the market today is at a 4.2-month supply. Inventory has dropped to 6.5% lower than this time last year, marking the 27th month in a row of year-over-year decreases.
Looking at the latest report from Trulia, we see that not much is different, and in fact, recent natural disasters across the country have made inventory conditions even more dire.
Trulia’s market mismatch score measures the search interest of buyers against the category of homes in the different markets that are available. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”
The chart below details their latest analysis.
Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, which is leading to a highly competitive seller’s market in these categories.
Premium homebuyers, on the other hand, have the best chance of less competition and more inventory of listings in their price range with a 14.7-point surplus, which is creating more of a buyer’s market.
Real estate is local. If you are thinking about buying OR selling this fall, let’s get together to discuss the exact market conditions in your area.
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