How Inventory Levels Impact Buyers and Sellers
In 2023, you need to pay attention to inventory levels in your market.
In 2022, interest rates were the buzzword for real estate. However, in 2023, the focus is shifting to inventory. This refers to the number of homes for sale at any given time. Unlike sales prices, which are a lagging indicator and reflect the past, inventory is a real-time metric.
This concept matters in real estate because it impacts both buyers and sellers. When the inventory in a particular market is low and there are more buyers than homes for sale, competitive-offer situations arise, which lead to price escalations. On the other hand, when inventory is high, buyers have more options and they can negotiate better prices and contract terms with sellers.
In addition, when inventory is low, it's an excellent opportunity for sellers to sell their homes at a higher price. The limited supply of homes creates a seller's market where buyers compete with each other to secure a home. However, when the inventory is high, it's a buyer's market, and sellers have to compete with other sellers to attract buyers. This competition can result in lower prices and longer listing times. This has all been affecting the D.C. market.
If you have any questions about inventory levels or your specific area, don’t hesitate to reach out to me by phone call or email. I look forward to hearing from you!