Today, Home Sellers and Buyers May Be Experiencing Two Totally Different Worlds. Here’s Why.

The real estate market nationwide is starting to divide.  Some regions, states and counties are experiencing a shift toward homebuyers.  In others, sellers still have leverage.  It all depends on where you live.

Here’s what we see, state by state:

The following 3 maps give you great insight into how the shifting market is affecting each state.

•     Darker Blue = Buyer Friendly
•     Lighter Blue = Seller’s Market

Inventory Levels Are a First Sign of a Divided Market

Nationwide, the number of homes coming on the market has increased, the question is, how much growth has been realized.  It can look dramatically different depending on your location. 

The map below breaks it down pretty clearly:

•     Lighter Blue Shades show states where inventory is still on the low side.  Homes are likely to be sold quickly, have multiple offers and sold with fewer concessions from the sellers
•     Darker Blue Shades are where inventory is on the rise more than other areas.  Buyers have more to choose from, have an easier time securing a home, and have a stronger position when it comes to negotiation of repairs, credits and closing expectations

As Inventory Increases Prices Will Follow in the Opposite Direction

Tracking how home prices are shifting state-by-state is another indicator as to the great divide that is taking shape.  Like the image above (Inventory Growth), the vast majority of states when it comes to price shifts, mirror inventory growth.

•     Lighter Blue Shades show states where prices continue to increase because of low inventory of homes for sale.  Buyers are still competing for homes which moves the price of the home higher
•     Darker blue shades indicate where prices are stabilizing or slightly coming down.  This is likely due to an expanding number of homes for sale.  You will see an increase in price reductions, openness to concessions from the seller and more budget-conscious buyers

The Story Also Unfolds with Time on Market

How quickly homes are selling also tell the tale of two markets.  State by state we see the same general pattern  were a lot of the darker blue states are in the lower half of the country. 

As the number of the homes coming up for sale grows in a particular area, the time on market tends to increase.  That’s why those same areas that have increased inventory, see homes taking longer to sell.

It makes sense that those states where homes are taking longer and longer to sell experience multiple price adjustments and longer marketing timeframes (and more frustration on the part of sellers and listing agents).  Yet those areas that are experiencing quick sales and lower inventory are still competing for homes with multiple offers and over-bidding.

Why Local Experience Can Play A Huge Role in Today’s Market

All real estate is local.  That’s why understanding the street, neighborhood, town and/or city in which you live is probably the most valuable asset you as a homeowner, can have.  Conditions are going to vary a lot depending on where you live – down to the street and block.  And, while we provided insight from a state-by-state perspective, having someone in your corner who knows the nuances of your town, neighborhood and street.   

Want to Know What Conditions Look Like in Your Neighborhood?

If you are curious about what side of the real estate divide you're neighborhood is on, let's chat.  We can walk through values, trends and numbers and create a clear path to understand what the future of real estate is in your neighborhood.