If you want to buy real estate in Springfield MO, brace yourself for fewer homes. Low inventory isn’t an imaginary problem. According to a piece by usatoday.com, the inventory of homes available across the United States is at a 20-year low. Fewer homes means more competition for the best Springfield real estate. By working with a veteran real estate agent who knows the Springfield neighborhoods, it’s easier to land a great home. A survey by realtor.com points to baby boomers’ reluctance to part with their current homes as the main reason for the low inventory. More than 59 percent of the people surveyed by realtor.com said they don’t plan to sell their current home this year.
Getting a foot in the door
Experts point out there is a 4.3 month home supply across the nation, which is down from 4.6 months compared to one year ago. Meanwhile, the home price index is up by 5.6 percent. Because of the housing shortage, some millennials choose smaller homes or townhouses. It’s better to get your foot in the door with a less expensive or smaller house so that you build equity as home values continue to increase.
Knowing your potential buyers
If you want to list your Springfield MO real estate this year, it’s important to understand the typical buyer. By staging and renovating to appeal to millennials, the odds increase of a quick sale. Knowing the typical buyer is younger with less money often means making less expensive updates and improvements. Studies show most baby boomers don’t plan to sell, which means they aren’t buying either. Eighty-five percent of baby boomers say they don’t plan to sell. Boomers own twice as many homes as millennials.
Another reason for the low inventory of homes has to do with statistics related to home worth. Experts point to the fact that the historical average of underwater homes was 5 percent, but now rests at 10 percent. In other words, 10 percent of homeowners still owe more money on their mortgages than their homes are worth. In 2012, a startling 29 percent of homeowners were underwater on mortgages.
At Realty Executives By Realty Choice, we help first-time homebuyers and others locate the most desirable real estate in Springfield MO. For more tips on finding good homes in up-and-coming neighborhoods within budget, please contact us.