Current market conditions around the country have presented an opportunity like no other for those who are looking to make the jump and upgrade to luxury homes or downsize to shed a few square feet.
The National Association of Realtors reports that national inventory levels are now at a 4.3-month supply. A normal market, where prices appreciate with inflation, has 6-7-months inventory. The national market has echoed the conditions felt in the starter and trade-up markets as inventory has declined year-over-year for 25 consecutive months.
The chart below from shows the relationship between the inventory of homes for sale and prices. **Image Source: Keeping Current Matters**
According to Trulia’s latest Inventory Report, the inventory of homes for sale in the two lower priced markets has dropped by double digit percentages over the last 12 months (16% for starter and 13% for trade-up homes). While the inventory of homes in the premium home category has dropped by only 4%.
This has created a seller’s market in the lower-priced markets, as 54% of homes were on the market for less than a month in the last Realtors Confidence Index, and a buyer’s market in the luxury market, where homes were on the market for an average of 160 days according to the Institute for Luxury Home Marketing.
If you are thinking of listing your home and moving up to a luxury home or downsizing to a smaller one, give us a call to discuss your options today (301) 437-1622.
**Source: Keeping Current Matters**
**Source: CNN Money**
