Where Have All the Listings Gone?

With a new year starts a new chance for real estate to make headlines, and so far 2013 would be “Where Have All the Listings Gone?” Just as 2012 ended with low inventory levels, we are still seeing this problem over a month into the new year. Less than 1% of existing homes are for sale in Boulder County, a very low number, and troublesome for buyers. Some sellers have been able to capitalize on the decreased competition by getting a higher price for their home than they did one year ago. However, it’s not to the point where buyers will sacrifice things such as living on a very busy street, having views of a commercial parking lot, or buying a fixer-upper – without of course paying less for that.

While a portion of buyers have the luxury of taking a “wait and see” approach to what new inventory will come on, many people need to make a decision now and will have to settle for what is available. Superior and Louisville in particular are especially in demand right now, with more than half of all listings under contract in both towns. Buyers must keep in mind though that even a half of one percent rise in interest rates will result in 6.3% less purchasing power, so the waiting game can backfire as interest rates are expected to rise as the year goes on.

What does this mean for buyers? Understand that you are in competition with others now, and that in most cases the seller has the upper hand. If you find a property you like, you must act quickly to get it and be reasonable in an initial offer; low-ball offers will get nothing but upset sellers who then may not want to work with you. Know what you want, and what you’d be willing to sacrifice to get it (i.e., a smaller lot but a bigger home, a different school district, etc.).

What does this mean for sellers? If you want your home to go quick, have it look its best by keeping it clean, de-cluttered, and well-maintained. Know that real estate events of the past decade have left a lasting impression on everyone, so buyers are still hesitant to “overpay” and risk any financial distress. Yes, you can ask more for your home than 2011 prices, but it must still be realistic.

Thinking of selling your home? Call “Definitely Dave” today at 303-442-5001 to see how much you could net!