Obviously this is something I watch very carefully and I always hear people say that they "feel" like something is going to change. I put a lot of value in numbers because numbers don't lie. Here are my recent markers for some significant change:
1. Number of sales/year has decreased and active inventory remains low. The volume of sales year over year has decreased by a total of 10% just within Newport Crest. You can see more outlined in the following article:A Few Comments on July Existing Home Sales
2. Every day, I'm getting a disproportionate number of inquiries from buyers as opposed to sellers.
3. The biggest ticket item to me, is the foreclosure rate has decreased significantly. Check out the following article to read more about what these Black Knight: Foreclosure inventory below 400,000 for the first time since February 2007
These are some strange times with low inventory, low interest rates, low foreclosure rates and increasing prices. To me, this indicates that there aren't many sellers selling. I just talked to someone who was nervous about providing an vacant property to a buyer who contacted her off market. I believe that there is a strong dissonance if people do not recognize that they have a scarce product and people are willing to work harder to get that product. This aggressiveness on the parts of buyers and low inventory is bound to continue to drive up pricing. I'm just curious at what point are buyers going to be content with renting or doing this level of work to obtain a property. I'd argue that the market is tight, but when does it turn into irrational pricing? Stay tuned for more information.
1. Number of sales/year has decreased and active inventory remains low. The volume of sales year over year has decreased by a total of 10% just within Newport Crest. You can see more outlined in the following article:A Few Comments on July Existing Home Sales
2. Every day, I'm getting a disproportionate number of inquiries from buyers as opposed to sellers.
3. The biggest ticket item to me, is the foreclosure rate has decreased significantly. Check out the following article to read more about what these Black Knight: Foreclosure inventory below 400,000 for the first time since February 2007
These are some strange times with low inventory, low interest rates, low foreclosure rates and increasing prices. To me, this indicates that there aren't many sellers selling. I just talked to someone who was nervous about providing an vacant property to a buyer who contacted her off market. I believe that there is a strong dissonance if people do not recognize that they have a scarce product and people are willing to work harder to get that product. This aggressiveness on the parts of buyers and low inventory is bound to continue to drive up pricing. I'm just curious at what point are buyers going to be content with renting or doing this level of work to obtain a property. I'd argue that the market is tight, but when does it turn into irrational pricing? Stay tuned for more information.
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