Why Low Housing Inventory is a Good Time to Sell

A period of low housing inventory is typically a good time for potential home sellers to jump into the market. Why? Because of supply and demand.

Low Housing Inventory = Less Competition

The demand for housing is growing. With the largest generation in history coming of home-buying age, coupled with not enough new homes built for the last decade, you get a low housing inventory situation.

This is a benefit to home sellers. The less inventory there is on the market, the less competition you face when selling your home. There are more buyers in the market to buy than there are homes for sale making the demand higher than supply.

Indianapolis Housing Inventory

In the Indianapolis housing market, we currently have 1.6 months' worth of housing inventory. That means, if no more homes came on the market, at the current pace, we would sell through all the homes in 1.6 months.

In this low inventory environment, Metro Indianapolis is still seeing multiple offers and some homes selling in just a few days. While we are definitely in a seller's market, it's not the crazy, white-hot seller's market of the last couple of years where buyers were paying thousands over the listing price. According to the chief economist for the National Association of Realtors: 

"The lack of housing inventory is a major constraint to rising sales," said NAR Chief Economist Lawrence Yun. "Multiple offers are still occurring on about a third of all listings, and 28% of homes are selling above list price. Limited housing supply is simply not meeting demand nationally."

Remember though, today's buyers and their agents are savvy. Attractive, well-cared-for homes are high on their list with move-in-ready homes being the favorite.

Sellers who price their homes right for their condition and the local market are selling quickly and for good money. Skimp on the preparation of your home, and odds are it will sit on the market for a while. 

If you do receive multiple offers, your leverage improves. You are more likely to sell on your terms. It's an opportunity for sellers in a low housing inventory market. If you partner with a great real estate agent and team, you will get valuable advice and suggestions to get your home prepared for the market and priced right. 

Bottom Line

If you've been waiting for the right time to sell your home, now might be it. This low housing inventory market gives the seller an advantage when they work with knowledgeable real estate agent like the Evelo Team! Call/Text/Email us today.