Here’s what our inventory shortage means for buyers and sellers.
If you’ve done any reading about our market, you know that our inventory is historically low. Supply isn’t just scarce in the Twin Cities either; this issue affects the whole country. That’s why today we want to talk about how our inventory shortage affects both buyers and sellers in our current market.
To illustrate just how low our inventory is, let’s look at an example. A standard price range for single-family homes in Savage and Prior Lake is between $400,000 and $500,000. In this range, there are currently only nine houses on the market. Of those nine, eight are active, and four of them are already under contract.
Every price range is affected by the inventory shortage. If you’re looking for a more affordable home, the issue might even be worse. Since prices have appreciated so much recently, $400,000 is a new benchmark for first-time buyers. If you’re looking to buy, you need to make sure you work with a great agent so that you don’t miss out.
So what about sight-unseen offers? Are people really buying homes without ever stepping foot in the door? The answer is yes. When things are this competitive, buyers will do just about anything to win a house. Just the other week, a buyer we were working with scheduled a showing at a $1 million home. The house was in coming-soon status, so no one had actually had a showing there yet. Unfortunately, it didn’t matter. Our showing was canceled because someone made a sight-unseen offer, and the seller accepted.
If you’re a seller, this could be an incredible time to enter the market. Buyers are starved for inventory. If the unique features of your home fit the market, you are likely to receive a favorable sight-unseen offer.
This market is unlike anything we’ve ever seen. If you want a great team to help you navigate it, please reach out to us via phone or email. We look forward to hearing from you!