In the real estate industry, a six-month supply of inventory is considered to be a stable market. With the recent increase in demand for housing, Michiana's real estate is currently experiencing a shortage of inventory. This is fantastic news for sellers and those thinking about selling their home, but it means buyers are facing much stiffer competition. Homes are being sold after only one day after listing. Many sellers are receiving multiple offers, and occasionally homes are sold for over the asking price.
The rising demand for homes in the area can be attributed to a number of reasons. The economy is flourishing, and the abundance of job opportunities and financial stability are incentives for many families to purchase a house in the area. With interest rates expected to rise in the next few years, buyers are jumping into the market rather than opting to wait any longer.
An early spring and warmer weather also helped to kickstart the real estate season. Buyers prefer to look at homes when conditions are more amenable. The snow and ice that accompanies winter can make the process of searching for homes and moving much more difficult and unpleasant. As such, real estate transactions are often less frequent during the harsh winter months.
What does this mean for you as a seller? If you have been considering listing your home for sale, now is a great time. Markets often balance themselves in the long run to bring supply and demand to an equilibrium. As residents begin to see a surge in home prices, more will be persuaded to list their homes. Those who have been putting off the sale of their home now have a greater incentive to do so. This real estate boom may not last, however. The increase in interest rates will be like to reduce the number of buyers in the market in the upcoming years.
For buyers who are worried about the prospect of being able to find their dream home in this real estate market, real estate experts have a few tips. First, it is important to have a clear idea of what you are looking for. Come prepared with a list of criteria when you begin your search, and be ready to place an offer right away if you find a house that meets your needs. With sellers often receiving multiple offers, there is less time to wait to make a decision. That being said, you should have a set budget and know what you are unwilling to compromise on. While there is currently that sense that you need to rush your decision in order to secure your home, a house is a big investment. It is not recommended that buyers go above what they can reasonably afford or settle in the moment for something that will become an issue later on. With the market being so competitive for buyers, a new construction may be a good alternative if you are unable to find what you are looking for.