Just like with any product or service, the law of supply and demand impacts home prices. Any time that there is less supply than the market demands, prices increase.
Just like many areas of the country, the supply of homes for sale in the Summit County starter and trade-up home markets is so low that bidding wars have ensued.
According to the Summit MLS, 1,345 residential properties listed at $750,000 and under sold at an average of 98.32% of list price, with several of them going above list price due to multiple offers. 649 residential properties listed over $750,000 sold at an average of 96.77% of list price.
When we look at the lack of inventory currently on the market, we can see that supply is not out there, and the demand will likely continue to push prices upward. A healthy inventory has about 6 months of inventory active at any given time. We are definitely in a seller’s market in Summit County.
For example, we have 1.3 months of inventory for Single Family homes listed under $750,000 and less than 1 month of inventory for multi-family properties listed under $750,000.
We have 3.5 months of inventory for Single Family homes listed over $750,000 and 4.1 months of inventory for multi-family properties listed over $750,000.
This should not be seen by sellers as permission to overprice their homes, though. Buyers are becoming more and more educated, especially those who have been searching for their dream homes for a while now while waiting for new inventory to come to market. Properties that are overpriced are staying on the market – buyers aren’t bothering to even make offers on those properties.
Realtor.com gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”
Without a large wave of new listings coming to market, buyers will continue competing with each other for the homes that are available. If you are thinking of selling your home, now may be the time to do so before more competition comes this spring. Let’s get together to determine the demand for your house in our area.