All across America, the inventory of existing homes for sale has been experiencing a dramatic drop. We are seeing this trend play out locally right here in Columbia County.
The Data: A 21% Inventory Drop
As of May 1st, 2017, the number of active homes for sale in our county stands at 566. To put that in perspective, exactly one year ago, that number was 720.
The Impact on the Local Market
What does a drop of 154 homes mean for you? It comes down to the simple law of supply and demand. When inventory shrinks and buyer interest remains steady or grows, prices are naturally pushed higher.
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For Sellers: This is excellent news. Less competition means your property stands out more, often leading to faster sales and stronger offers.
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For Buyers: The market is becoming increasingly competitive. We are seeing more multiple-offer situations and a faster pace of sales.
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For First-Time Buyers: This demographic is feeling the pinch the most. As prices rise, affordability becomes a significant hurdle for those looking to enter the market for the first time.
How Did We Get Here?
The market has spent the last five years slowly recovering from the Great Recession. The "glut" of foreclosures and short sales that defined the early 2010s has finally been absorbed. Simultaneously, the construction of new homes dropped significantly during that same period, leaving us with the inventory shortage we see today.
Moving Forward in 2017
What can we expect for the remainder of the year?
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Slightly higher prices as buyers compete for fewer homes.
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Increased competition, requiring buyers to be "offer-ready" with pre-approvals in hand.
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A faster market pace, where homes in good condition won't stay active for long.
Whether you are looking to capitalize on high seller demand or need a strategy to win as a buyer in a tight market, having a professional guide is essential.
