It all began as the inventories of existing homes nationwide started to shrink. A significant shift in homeowner behavior is now driving the market: sellers across the country are staying in their homes longer than ever before.
From 7 Years to 10 Years
Historically, the average homeowner moved every seven years. Today, that average has stretched to ten years. This three-year delay in "trading up" or "downsizing" has removed a massive amount of predictable inventory from the market.
The Rental Push and Buyer Competition
At the same time, the rising cost of renting is pushing more buyers into the market. This combination of lower supply and higher demand has resulted in the "new normal" for 2017: multiple offer scenarios. This environment is particularly challenging for first-time homebuyers, who are often competing against seasoned investors or buyers with larger cash reserves.
Local Impact: Demand Outpacing Supply
Here in Columbia County, we are feeling this squeeze firsthand. The demand for homes is currently much larger than the existing supply. For sellers who are realistic about their pricing, this market presents a unique opportunity.
The Strategy: Pricing for Competition
One of the most effective strategies we are seeing right now is "strategic underpricing." When a seller follows the advice of their Realtor and prices their property slightly below market value, it often triggers:
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Offer Wars: Resulting in sales prices that exceed the original asking price.
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Cleaner Terms: A reduction in contingencies as buyers compete to be the most attractive offer.
Proceed with Caution
While this market favors the seller, both buyers and sellers need to be careful. In a fast-moving market, mistakes in judgment regarding inspections, appraisals, or financing can be very costly.
