Based on the current state of the market, trends are currently favoring buyers. If you are going to buy, now may be the time to take advantage of the number of houses currently available for sale in Midlothian, VA.
The best time to buy anything is when demand for that item is low and the supply of that item is high. The latest Existing-Home Sales Report released by the National Association of Realtors (NAR), reveals that demand for housing continues to be strong across the country, but the supply is struggling to keep pace. However, in Midlothian, we’re seeing the opposite trend – supply is high, meaning there are a lot of options currently available to you, making it a great time to buy a home.
The most important data revealed this month was not actually sales. In reality, it was the inventory of homes for sale (supply). The data shows:
- Total housing inventory at the end of August increased +4.0% to 67,882 homes available for sale.
- Unsold inventory is higher than the 7.3-month figure recorded in August 2018.
- This represents a 7.4-month supply at the current sales pace.
In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market, which drives higher than normal price appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect home values to come down, which creates a lot of opportunity to buy low (see below):As we mentioned before, there is currently a 7.1-month supply of homes on the market, and demand will fail to catch up with supply if buyers don’t take advantage of the opportunities this market is creating.
If you are going to buy, now may be the time to take advantage of the large inventory of homes available for sale, one of which could become your dream home.