The Iowa County real estate market is anticipated to do very well this year as mortgage rates stay at historic lows. One challenge to the housing industry is the shortage of homes out there on the market. Last week, move.com released a report showing that 2020 is beginning with the lowest obtainable housing stock in two years. The report explains:
“Last month saw the largest the most important the biggest year-over-year decline of housing stock in virtually three years with a dramatic 12 percent decline, pushing the number of homes for sale within the U.S. to the lowest degree since January 2018.”
The report also revealed that the decline in inventory stretches throughout all price points, as shown in the following graph:George Ratiu, Senior Economist at realtor.com, explains how this drop in obtainable homes on the market comes at a time when extra consumers are expected to enter the market:
“The market is scuffling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a primary age for a lot of to buy their first dwelling. The significant stock drop…is a harbinger of the persevering with imbalance anticipated to plague this yr’s markets, as the variety of homes on the market are poised to achieve historically low levels.”
The question is: What does this mean to you?
If You’re a Iowa County Home Buyer…
Be patient throughout your property search. It may take time to find a residence you like. Once you do, nonetheless, be prepared to maneuver forward shortly. Get pre-approved for a mortgage, be able to make a competitive offer from the start, and understand that a} shortage in inventory might lead to the resurgence of bidding wars. Calculate just how far you’re willing to go to safe a house, if you happen to really like it.
If You’re a Iowa County Home Seller…
Notice that, in some ways, you’re within the driver’s seat. When there’s a shortage of an merchandise on the similar time there’s a sturdy demand for that item, the vendor of that item is in a great position to negotiate. Whether it’s value, shifting date, attainable repairs, or anything, you’ll be capable of demand more from a potential purchaser at a time like this – especially if you have a number of buyers. Don’t be unreasonable, however understand you most likely have the upper hand.
The Iowa County housing market will stay strong all through 2020. Understand what that means to you, whether or not you’re shopping for, selling, or doing both.