I recently wrote an article for the Sunriver Scene, a local magazine focused on Sunriver Resort living. I have found the concept of home inventories to be both telling and confusing. Hidden beneath the poorly publicized information, mostly focused on national trends, home inventory information can offer some of the most telling stories of how well your hunt for a new home will proceed.
You will encounter all sorts of information in the hunt for a home of your own. Mortgage rates, while important, will usually take a front and center position in the discussions you will have once you decide to buy a home. And while mortgage rates play a significant role in the home buying process, they tend to be an after-the-fact consideration. Home inventories, if understood, can give you a much more informed approach to the process. So I thought I’d take the next couple of posts explaining what this info means and how it impacts your search for a home in Central Oregon.
What are Home Inventory Reports?
Home inventory reports are often published monthly. They are designed to reflect the availability of homes in specific areas. But buyers often overlook the wealth of information hidden between the dry numbers. But if you know what you are looking for, it can greatly impact the price you pay for the house of your dreams.
How do Home Inventory Reports Impact Purchase Prices?
You have, no doubt, heard the expression, “It’s a seller’s market” or the opposite, “It’s a buyer’s market”. These are based on a simple Econ 101 concept of supply and demand. The report suggests that, based on the number of homes available, you could be paying below fair market price – a buyer’s market – or more than you might have otherwise – a seller’s market.
How are these Types of Markets Determined?
Hypothetically, a market where homes have been on the listed for less than 120 days, is considered seller friendly. It assumes that, if no new homes come on the market during that time period, all of the available homes will be sold. This suggests that there are more buyers than properties for sale and in this situation, prices tend to be higher than average. If you are buying, this may not be a good situation.
Conversely, if there are more houses on the market and have been for nine months or more, sellers may get motivated and lower prices. Other sellers are forced to do so also and buyers with good credit and/or financing swoop in.
A balanced market, something in between four months and nine months is actually considered a very healthy situation. Buyers pay fair market because sellers are encouraged to price their homes in such a way as to stand out from other homes.
There are three major real estate markets in Central Oregon. Over the next several posts, we’ll look at each of these areas in depth. There is a real estate sweet spot out there, if you know what and where you are looking.
How can we assist you?
On behalf of The Jones Group @ Sunriver Realty
Nola Horton-Jones, Principal Broker/Realtor | ABR, C-RIS, e-PRO, GREEN, RSPS, CCIM Candidate
Bryce Jones, Broker/Realtor | ABR, CRS, e-PRO, GREEN, GRI, RSPS, SFR
Karen Marcy, Broker/Realtor
The Jones Group @ Sunriver Realty | 57057 Beaver Drive | Sunriver, OR 97707
Mobile: 541-420-3725 | Mobile: 541-420-4018 | Mobile: 503-327-9611 | Fax: 541-593-5123
Licensed in Oregon