The Racine County real estate market is expected to do very nicely this year as mortgage rates stay at historic lows. One challenge to the housing industry is the lack of homes available on the market. Last week, move.com released a report showing that 2020 is beginning with the lowest available housing inventory in two years. The report explains:
“Last month saw the largest the most important the biggest year-over-year decline of housing inventory in nearly three years with a dramatic 12 p.c decline, pushing the number of properties for sale in the U.S. to the lowest level since January 2018.”
The report additionally revealed that the decline in stock stretches throughout all price points, as shown in the following graph:George Ratiu, Senior Economist at realtor.com, explains how this drop in obtainable homes on the market comes at a time when more consumers are expected to enter the market:
“The market is scuffling with a large housing undersupply simply as 4.eight million millennials are reaching 30-years of age in 2020, a primary age for many to purchase their first home. The significant inventory drop…is a harbinger of the continuing imbalance expected to plague this yr’s markets, because the variety of homes for sale are poised to reach traditionally low ranges.”
The question is: What does this mean to you?
If You’re a Racine County Home Buyer…
Be patient during your home search. It could take time to discover a house you’re keen on. When you do, however, be prepared to maneuver ahead quickly. Get pre-approved for a mortgage, be able to make a competitive offer from the beginning, and understand that a} shortage in inventory may lead to the resurgence of bidding wars. Calculate simply how far you’re prepared to go to secure a house, if you really find it irresistible.
If You’re a Racine County Home Seller…
Understand that, in some ways, you’re in the driver’s seat. When there’s a shortage of an merchandise on the identical time there’s a strong demand for that item, the seller of that item is in a good position to negotiate. Whether or not it is worth, transferring date, potential repairs, or the rest, you’ll be capable of demand more from a possible purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, however perceive you probably have the upper hand.
The Racine County housing market will stay sturdy throughout 2020. Understand what that means to you, whether you’re buying, selling, or doing each.