US Housing Demand Far Out-Weighing Supply
As the trend continues, US housing demand is far out-weighing supply. Homes that are on the market are often going into multiple offer situations, selling above asking price, and closing in fewer days than they did one year ago.
Several California markets showed remarkably quick market times with as few as 48 days on market (average) in San Francisco, while nationally the average days on market was 30 days below 2012 – 86 days, down from 116. Sacramento showed 59 days on market, Dallas at 60 days, while Oakland and San Jose showed some of the tightest market conditions. All of the 30 major metro markets showed faster market stays, anywhere from 30 to 46 days faster.
As is to be expected, a lack of supply is creating a buyer's frenzy within the limited inventory among markets nationwide, causing available homes to be snapped up quickly. Affordability combined with lower mortgage rates and economic turnarounds are pushing buyers who would otherwise wait into the market.
As rates and inventory increase, so will the number of days on market, sooner than later. But, those who are entering the market, or still looking, be advised that you should come prepared. Have all of your ducks in a row, so to speak. This includes pre-qualifications, approvals, and a pre-determined amount you are willing to spend. This will save you a lot of trouble and possibly heartache.
We'd love to hear your thoughts about this information in our comments section below.
Have you been in a multiple offer situation, only to see the price rise out of your range? Are you seeing limited inventory and fewer days on market in your area, as well? Let us know your thoughts on the US housing demand situation!
Photo courtesy of Wonderlane’s Flickr