“Inventory” refers to
the available homes for sale. You sometime here new home inventory and resale or
existing home inventory. All real estate markets are different so you really
need to find out what is going on in your own particular market.
In the Austin Texas market there is simply a higher demand
for “Housing” in general. There are areas where there are homes for sale
waiting for buyers and there are areas where anything that comes on the market
is snapped up. One contributing factor to this later example is the influx of
new people into the Austin market.
We have a fairly good economy when compared to other markets
in the US. Fueled primarily by good job growth, lower cost of living (compared
to more expensive areas) , access to well educated employee pool and good
school/education systems.
Also thrown into this mix is the fact that home builders cut
back production drastically in 2009/2010 in response to the market correction
that affected most of the US. The builders have done an excellent job managing
growth since then. They have been only starting new construction to meet approx.
80% of demand, thus pushing a % of buyers into the existing home market. This
helps keep demand for their future products and helps keep prices at a level
where they can make money.
The existing home inventory then has traditional buyers who
prefer not to purchase new and those who want new. So you will see areas in
sought after school districts or w/in reasonable commutes becoming more desirable
and upward pressures on those homes.
For 2014 in the
Austin market. There is no drop off in demand and no noticeable increase in
inventory (new or existing) being seen. So in a perfect storm if you are a
seller looking to reduce your expenses (downsize) and you can afford to do so
now would be an excellent time to buy your smaller home and sell into a strong
market in the spring market (Feb-June). If you are in the process of planning a
move to the Austin area you will want to reach out sooner rather than later to an
experienced Realtor to start looking at your alternatives.
There are other real estate markets in the U.S. where inventory
and demand are at different levels. Check
with your locale Realtor to see how the market looks to either buyer or seller.
Find a Realtor that is going to give you the right information! Unfortunately
there are Realtors that are going to tell you what you want to hear so don’t give
them too much info on your expectations. Let them do an honest comparative analysis
to see where your market value is.
Call me if you have
any questions or need any referrals
Mobile: 512-922-4922
Bob Kenney, Realtor
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