This article was originally published by the Messenger Inquirer newspaper on April 12, 2017.
Link to original artcle: http://www.messenger-inquirer.com/news/local/local-real-estate-sees-sellers-market/article_50cc9101-8309-5bd0-919f-04164e31b6b5.html
“Local real estate sees sellers’ market” By Keith Lawrence, Messenger-Inquirer
Nationally, the number of houses on the market this spring is said to be the lowest in nearly two decades. The National Association of Realtors says about 1.75 million homes were for sale nationally at the end of February. That’s down 6.4 percent from a year earlier and only slightly up from January, when listings reached their lowest point since the association began tracking them in 1999. All told, the supply of homes for sale has fallen on an annual basis for the past 21 months, according to the Associated Press.
And Owensboro is seeing the same trend.
On July 1, 2014, a total of 486 houses were on the market here. As of April 3, there were 344. That’s a drop of 29.22 percent. But the shortage of available homes on the market is even more pronounced when you go back to 2012 when there were 558 homes on the market. Or 2011 when there were 672 — nearly twice as many as today.
“It’s a seller’s market,” Gordon Barnett, president of the Greater Owensboro Realtor Association, said earlier this week.
In January, Angela Clark, the local association’s 2016 president, said the number of houses on the market last year was “significantly lower” than it’s been in recent years. “It’s supply and demand,” she said. “Lower inventory means higher prices.”
Many people who are trying to sell their property are getting multiple offers, Clark said. “It’s almost like price wars,” she said. “People are bringing their A game in trying to get the house they want.”
The biggest shortage, Clark said, was in the $80,000 to $150,000 price range.
One problem, realtors say, is that people are afraid they won’t be able to find another house they like if they sell their own. That, they say, has people who would likely be thinking about moving deciding to stay put for a while longer. That, they say, has people who would likely be thinking about moving deciding to stay put for a while longer.
Matt Shown, communications assistant at the local realtor association, says, “A seller’s market is a situation in which, if trends continue, there is less than six months of inventory available. This is calculated by finding a ratio of the total units available by the units sold. That ratio for the month of March was 2.69. That means that we have just under three months of inventory available, if trends continue.”
“Inventories are really low,” Jay Velotta, the association’s president-elect, said recently. “They’re not where we’d like them to be.”
In March, local realtors sold 129 houses out of 344 on the market. That’s 37.5 percent of the inventory. Those 129 homes were listed at a total of $18.88 million. They sold for a combined $18.35 million — 97.18 percent of the asking price. That’s a good deal for sellers. But not so much for buyers.
Keith Lawrence, 270-691-7301, firstname.lastname@example.org