The Real Estate Market Currently Has a Balance of Buyer Demand and Seller Supply
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
A Balanced Real Estate Market Emerges After Years of Imbalance
For the first time since 1998, the U.S. real estate market is enjoying a rare balance between buyer demand and seller supply, as reported by the latest Current Market Conditions survey.
Key Insights:
- Balanced Buyer-Seller Ratio: Only 45% of respondents noted more buyers than sellers, a decline from 61% six months ago. 31% reported more sellers, while 24% observed an almost even market. This trend is consistent across the South, Midwest, Northeast, and California.
- Inventory Levels: According to data from the National Association of Realtors (NAR), the current supply of unsold homes is at 5.3 months, indicating a balanced market. The last similar balance was in January 1998.
- Regional Variations: Some Western states and Alaska still report higher buyer demand than seller supply, but overall, the market reflects a healthier equilibrium.
Market Trends:
- Time on Market: Homes are taking longer to sell, with 55% of properties on the market for more than 60 days, up from 30% three months ago. Despite this, 75% of sellers receive at least 95% of their asking price, though only 7% exceed 100%.
- Home Appreciation: Annual appreciation remains robust at about 10%, though it's trending towards single digits. Currently, 54% of agents report appreciation at 5% or less.
- Inventory Growth: The supply of unsold homes is increasing across virtually all price ranges, helping maintain market balance.
- Decline in Multiple Offers: Instances of multiple offers have dropped from 70% to 39% in a year due to decreased demand in many areas.
- Buyer Demographics: Move-up and repeat buyers outnumber first-time buyers two to one nationwide, with an even higher margin in California and the South.
Expert Views:
NAR President Thomas M. Stevens suggests that the market is returning to normalcy, with anticipated single-digit price appreciation. February saw a rise in existing home sales following a five-month decline, with the national median home price at $209,000, a 10.6% increase from last year.
Regional Highlights:
- Arizona: Neil Kalinski from Diamond GMAC in Tempe reports strong activity from move-up buyers, with median prices at $260,000. Homes sell quickly, often at 100% of asking prices.
- Virginia: In Leesburg and surrounding areas, Helena Talbot observes more sellers than buyers, with median prices at $400,000. Most sellers achieve 95% of asking prices.
- Ohio: Saralou Durham in Cincinnati notes a balanced market with prices ranging from $181,750 to $397,500 and strong demand leading to redevelopment in key areas.
- California: Lonnie Maples of Riverside highlights active first-time buyers, with a median price of $435,000 and sellers receiving at least 95% of asking prices.
First Quarter Regional Results:
- More Buyers: Nationally, 45% of respondents see more buyers, with 50% in the West.
- More Sellers: 31% report more sellers nationwide.
- Time on Market: 55% of homes take over 60 days to sell.
- Price Achievement: 75% of sellers attain 95% or more of their asking price.
- Appreciation: The majority report appreciation of 0-5%, with some regions experiencing higher rates.
- Inventory: 81% report a good supply of homes, reflecting increased stability.
Overall, the real estate market is transitioning towards a healthier state, offering a more predictable environment for buyers and sellers alike.
You can find the original non-AI version of this article here: The Real Estate Market Currently Has a Balance of Buyer Demand and Seller Supply.
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