Inventory Increase in Real Estate? Price is Going Up
As I have said several times in previous articles about low inventory, the inventory is still low. However, it appears we could be in the recovery stage, and the inventory is now beginning to increase? One of the conversations I had today with another Realtor outside my company, we discussed that offers are much more than traditional listing prices for many properties now. You can throw an offer just above the listing price in cash, but get shut out of the deal, thanks to another higher cash buyer. Through the grapevine, it’s happening everywhere.
Now we know that the prices are increasing, and we know why of course. As I explained on an article dated on Jun 21st, the current active on the market inventory was only 12,842. Today, we are looking at an approximately 300 more homes active on the market from that short time span. It’s not a huge number, but are there signs that its inventory is now beginning to increase? It’s an interesting observation to say the least.
The short sales had slightly increased from June 21st to today’s date, with just over 1,000, but nothing to be alarmed about. With the increase of inventory and traditional sales, the sellers and others holding back property may decide to market their homes.
From my experience and background as a former real estate appraiser, I can show you the ropes of where the market conditions are taking place for your neighborhood. If you decide to put your home on the market, I can assure you the original listing price will be at or higher than the bracketed comparables higher or lower if the characteristics of your home matches with the comparables sales and active listings.
If you have a home in Scottsdale in a Grayhawk area subdivision. You have a 4 bedroom home with 2,500 Square feet of living space with 3 baths, 2-Car garage with a pool on a non cul-de-sac street. It’s in good condition you are looking to place on the market.
Home A with 4 bedrooms, 2,540 Square Feet of living space, 3 baths, 2-Car garage and was sold for $399,000 two months ago in the same condition as a regular sale. Plus, it has a pool on a quiet, non cul-de-sac street.
Home B with 4 bedrooms, 2,663 Square Feet of living space with 2.5 baths, 2-Car garage, and was sold for $427,000 last month in the same condition as a regular sale. Plus, it has a pool on a cul-de-sac- near a busy road.
Home C with 3 bedrooms, 2,951 Square Feet of living space with 3 baths, 2-Car garage, and is pending for $489,900 in the same condition as a regular sale. Plus, it has a pool on a quiet, cul-de sac street.
These are actual and pending sales with exact locations undisclosed. As other conditions did not apply in terms of quality, style, builder and other minor features in my analysis, here are my thoughts along with not including other listings. Home A had its lowest sale 2 months ago of the three with about the same features. It appears Home A would sell for $399,000, right? Home B was sold $28K more than Home A, but it was slightly larger in square feet in living space, on a cul-de-sac, but near a busy road. We see an increase in market price. I strongly believe the busy believe the cul-de-sac and busy road off sets the non cul-de-sac and quiet location. The kicker is Home B is inferior to your home with the bathroom count at 2.5. Home C is pending for $90,900 more than Home A. It has over 450 Square Feet more than your property, on a cul-de-sac location. The adjusted sales price would fall significantly for Home C, but the proof shows that Sale B has shown the best evidence in the market increase with its similarities of features with the lower bathroom count. We would consider listing the property at very high end of adjusted price or above the adjusted sales price to challenge the buyer in its current market.
If you are looking to sell your home, my team and I will work hard to provide you the best services as we challenge buyers as are in the recovery stage of the housing market throughout the Phoenix Valley Metro. Call me at 480-788-9212 for your real estate needs! I will list your home and provide a series of open houses at your approval.
Grawhawk Real Estate and Home For Sale
James W. Plummer III(Jim), Scottsdale