Today I wanted to share with you a market update for Towne Lake. Everyone always asks, “Is it a seller’s market or a buyer’s market?” Many are asking what the right strategy is, and with the influence of HGTV home buying shows, many buyers and sellers have a skewed perception of how they can approach the market.
The numbers are unemotional and they do not lie. When we look at the numbers for Towne Lake, we’ve had 297 closed transactions within the last six months. With that, there are currently 109 active and 80 pending listings, and in June alone we saw about 75 closings.
Looking at those numbers, we have about 2.2 months of inventory. What that means is that if no other listings came on the market, it would take about two months to sell all the homes that are currently listed. Anything less than six months of inventory is typically considered a seller’s market.
Because there is more demand from buyers, it is the sellers that are driving the market. They can put their home on the market and charge higher prices for the updates they’ve done to the home, and because there are fewer choices, they can do that and get more money for their homes.
When that happens, everybody starts to push the market, and that’s what we’re seeing. For example, “John” sells his home for $220,000, his neighbor then sells his home at $230,000, and so on. There is a cap of how much you can push the market due to the issue of affordability of homes.
However, when there are more buyers than sellers, prices for homes climb. From my perspective, we’re starting to see the market cool off a bit. Fewer homes are selling almost immediately after listing, though that is still most often the case.
Appreciation at 10% to 15% is not sustainable, so it has to back down at some point. If you’re trying to sell in the Towne Lake market, then you’ll more than likely be able to sell your home for top dollar. If you’re a buyer in this market, my advice is to call us and talk over some strategies of how you can win in a seller’s market and get the home of your dreams.
If you have any other questions about this topic or you’re looking to buy or sell your home, please give us a call. We would be happy to help you!