Clue in the News:
Total active listings have increased significantly by 56.2%. In terms of single-family inventory, it currently stands at 2.7 months, a notable increase from 1.3 months compared to the previous year. According to the National Association of Realtors, the nationwide inventory is at a 2.6-month supply. Typically, a market with inventory between 4 and 6 months is considered a “balanced market” where neither the buyer nor the seller has a significant advantage.
What does it mean for investor:
While the sale volume is down, we are still technically in a seller market with 2.6 inventory vs 4-6 months normal. Still, consider a fair amount of multiple offers on highly desirable neighborhoods.
Always pay attention to the Day on Market of the area to know when you can come in aggressive on the offer, and when to make it easy for the seller.
Feature investment strategy:
Have you ever considered a condo as an investment strategy? While the high HOA fee stops most investors, a well-managed HOA with a reasonable amount of monthly fee and great amenities can increase rent and reduce expenses for the landlord. A well selected Condo will cashflow and save the investor from unexpected capital expenditure.
Here are more reasons people invest in condo:
It does not matter how good the home looks. A detailed inspection will reveal hidden issues. The buyer could use the inspection report to professionally negotiate with the seller during option period.