What Does Housing Inventory Mean?
A housing inventory means that buyers will pay more for homes because the demand for those on the market tends to be higher.
2023 real estate has become confused for agents and brokers. Mortgage rates are high, listing prices are elevated and housing inventory is limited. Homeowners are willing to leave their homes and sell because they were locked in record-low interest rates during the pandemic.
As a result, housing inventory has fallen down to record lows. While it has been trending downward over the last several years, 2023 has been a low point. For this year alone, housing inventory is 46% below the historical average that dates back to 1999. There is a catch that agents need to be aware of if they want to still be successful.
Beggars Can’t Be Choosers
A market with low housing inventory is associated with quick sales, higher asking prices but this isn’t always the case in today’s market. Although housing inventory is limited, buyers aren’t willing to settle for just any old home on the market. Currently, it is a seller’s market with a warning.
According to the recent report, 77% of buyers won’t even consider a home that isn’t move-in ready. For real estate agents, this means that if your listings aren’t hitting this gold standard, they won’t sell, even with few homes available. The reality is that to get those listings off the market, they have to be fixed up and updated to what buyers are looking for. Any listings in need of repairs or with seriously outdated features will be ignored by potential buyers and will sit on the market. This can make clients unhappy but also can be bad for your business.
Offer a Solution or Your Business Will Struggle
With a demand from buyers for move-in ready homes, pre-listing updates are becoming a necessity for every listing regardless of the market. Unfortunately for agents, our report also found that 90% of home sellers don’t want to spend the time, money and stress on home updates before they sell.
To avoid stale listings and unhappy clients, you need to provide your sellers with a solution. Look for a pay-at-closing option for pre-sale updates, like Curbio, that helps eliminate the barrier of finding funding for upfront costs that many homeowners cannot afford when they are about to move. A turnkey concierge service that also manages and streamlines these home improvement projects can remove worries about time and stress for sellers and you.
Offering a solution can not only help you move houses faster but also help you win listings? We found that 72% of homeowners choose agents who came to listing presentations with options.
