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Are We In A Housing Shortage?

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It 2013 now and let’s take a quick glimpse backwards.  We’ve gotten through the elections, we’ve avoided an economic depression despite the recent years of a recession, the Mayan calendar ended and we didn’t vanish from thin air, and we made it through new Years without anyone falling off cliff named ‘Fiscal’!  And now that all this is behind us, I’m really starting to see some consumer confidence with regards to home buying in Mammoth Lakes.  But let me tell ya; it’s no walk in the park for buyers these days.  They tell me what want and we use their purchase criteria to narrow down the search in hopes to hone down on that ideal purchase and then…arrrggghhh; there’s no inventory.  Where are all the homes?  There are plenty of buyers, but very little for them to purchase!

In some many areas of the country and in various segments of the Mammoth real estate market as well, we are starting to see home sale prices heading back up.  But as a challenge to this, the inventory of existing homes for sale is at its lowest level in seven years according to a recent article in the Realtor magazine published by the national Association of Realtors (http://www.realtor.org/).  And to top that off, newly constructed home inventory just hit a fifty year low if you can believe that.  This sort of lack of inventory is causing some real estate markets to start appreciating faster and higher than many analysts anticipated.

What does this mean for buyers?  Well it means that the purchasing side of the market has become competitive and those buyer days of just throwing out low ball offers all day long are nothing more than a time waster for you and your agent.  Those buyers who are serious about purchasing home need to be cash ready or pre-qualified, know what they want, understand the market, and be ready to write offers close to, at, or above asking price within a few days of a property coming on the market!

Written by Eric Leach

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