Inventory Levels Are Low But Buyers are Picky

Inventory Levels Are Low But Buyers are Picky

Inventory Levels Are Low But Buyers are PickyTight housing supply, declining affordability and tightening lending restrictions will cause existing home sales to stay level in 2014 according to National Association of Realtors Chief economist Lawrence Yun. 

Here in Atlanta Ga the low inventory levels have started to slow sales as buyers have fewer homes to choose from as they shop for a home to buy. But, in a real surprise to the market, buyers are not snapping up every home that comes on the market.  Many home buyers are holding out for a “good deal” which is translating into a move in ready home priced at a level market price.

Home buyers are being picky about what home they buy as they look for homes that do not need a lot of work and have been priced even with sales from earlier in 2013.  Any attempt by sellers to raise prices has been met with resistance from buyers who are looking for a deal.

From activity on my listings I can tell lots of buyers have set up alerts in the MLS where they receive a daily email with links to any new listings or price changes in a specific geographic area (zip code, school district, etc).  These alerts are set up by Realtors and filter out houses that do not meet a buyers criteria for the house they want to purchase.  Once the alert hits their email inbox home buyers have an early look at homes that have just been listed.  It can take up to 24 hours for a home to hit the Zillow database and even longer for Trulia (up to 48 hours) so the email alert gives home buyers a jump on the competition.

Once reason inventory levels are low is the lack of opportunity for move up buyers to find the home they want to move to.  This has a trickle down effect on the market as they hold their home off the market while looking for the move-up home to buy.  So it is not just a single price segment with low inventory, it is the same across the price spectrum.

If you are thinking about buying or selling an Atlanta GA home, call or text Sally English 404-229-2995 for tips and advice on how to get the best financial deal.