If you’re confused about what the heck is going on in the Real Estate market, or maybe just a little curious, we’re here to help. Currently, inventory is at an all-time low, with only 45 houses on the market in Catonsville! What does this mean for buyers and sellers? We have used three key graphs to summarize the current real estate market. If your purpose is to buy, or your goal is to sell, this is for you.
Months of Supply: Here, we’re looking at the absorption rate. That’s fancy wording for the rate homes are sold. As you can see, it gradually decreased as in 2019. What does that mean for you? Well, there’s not a ton of houses on the market.
Sellers – This is great for you. As soon as you put a house on the market, it won’t be there long!
Buyers – This is not so great for you. This means with the low inventory, you should be ready to move fast when you find a house you like.
Days on the Market: Here we’re looking at the average days a home is on the market. As you can see, in September, homes were on the market for an average of 50 days, in December, it was just over 30. To echo above, the market is moving fast for sellers.
Sellers – This is awesome, you’re house will likely be quick to sell
Buyers – Also echoing above, you have to be ready to act fast when you find something you like!
In case you don’t believe us yet, let’s summarize these stats to solidify that the absorption rate is decreasing.
Pending Units: This refers to the homes on the market that are technically still on the market, but do have an offer. Out of all the homes on the market, in 2019, there’s a lot more under contract in any given moment than in 2018.
Active Inventory: This is the raw count of homes being actively marketed. There’s way less in 2019 than in 2018! That’s why the houses are going so quickly!
Months of Inventory: This shows the average number of months a house stays on the market. A considerable decrease in the number of months a home stays on the marketing in comparison to 2019. You know this by now, though, when a house goes up for sale, it sells fast!
To our dear buyers, don’t get discouraged. Just because you have to ask fast doesn’t mean you get the short end of the stick. The good news is interest rates are currently super low. Right now, you can lock in an interest rate as low as 3%!
We also said you need to be ready to move and move quickly. What exactly does that mean?
- Make sure you are pre-qualified for a loan.
- You are ready to put down an earnest money deposit — usually a 1% down, even for you veteran buyers.
- Have an awesome real estate agent that is actively looking for houses that come on the market, are ready to negotiate quickly with the sales price, and are prepared when inspection comes back for repairs, so you move forward with the purchase. And in case you’re looking for one, we know some excellent ones!
Ready to hit the ground running in 2020? We are too! If you’re interested in either buying or selling a home in the near future, we would love to chat with you. Call our office at 443.499.3839 or email us directly at [email protected].