The Flagstaff marketplace has such a “thinventory” and once again, I was outbid on a home listed over $500K. Most recently, we wrote an offer on a home listed at $720K and we had our offer over the listing price! The winning bid was higher than ours!! Looks like the higher priced homes are just as tough to get currently as the homes that first time home buyers are looking for darn it!
Economist Lawrence Yun, as quoted last month, summed it up nicely as follows:
“Household incomes may be rising and giving consumers assurance that now is a good time to buy,” NAR Chief Economist Lawrence Yun said in a statement. “But these severe inventory shortages will likely continue to be a drag on sales potential the second half of the year.”
The cost of buying a single-family home increased in about 87% of the metros that NAR looked at. Prices dropped in just 23 markets.
That might explain why sales of all existing homes, which include both single-family residences and condos, fell 0.9% in the second quarter. They hit 5.57 million, according to the seasonally adjusted numbers in the report.
“With new supply not even coming close to keeping pace, price appreciation remained swift in most markets,” Yun said. “An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth-building benefits of homeownership.”
Looking forward to hearing more from him when he visits Flagstaff in November!