Nationally, declining housing inventories have made front page news. According to real-estate website Realtor.com, the number of homes listed in September, 2011 declined by about 20% from the previous year. This is the lowest level since 2007.
In Park City, there were 2,108 single family homes on the market for the first 9 months of 2010 compared to 1850 in 2011, a decline of about 12%. Condominiums declined from 1,564 in 2010 to 1,250 in 2011, a decline of about 20%. Remember, prices will not rise until there is a more balanced inventory, so I don’t really see how this could be bad news. However, there are some practical points to keep in mind if you are either trying to buy or sell a property right now:
• If you are a seller, you need to win the price war and beauty contest. Since I work with both buyers and sellers, I can tell you that a buyer is more likely to write an offer on a well-priced property rather than haggle with a seller who has chosen to overprice their property.
• If you are a buyer, understand that the other buyers are going to realize the attractive, well priced home is the one they want to buy, too. It is not unusual for such homes to receive multiple offers within a few days on market. If you negotiate too hard, you will lose your opportunity to purchase your favorite home to another buyer.
With interest rates still at record lows, it’s a great time to move up to that dream home or buy an investment property that can pay for your child’s college education. There are some great opportunities in Park City right now.