Low Supply and High Demand in Westport

The year 2013 has come in like a lion for those in the Real Estate Market. Bidding wars are happening again. Multiple offers have become commonplace. Homes are selling as soon as they hit the market, at times higher than asking price. Even the largest blizzard to hit the Northeast in over 30 years couldn’t put a damper on the enthusiasm.  To be honest, 2012 already had an enjoyed an increase over 2011, and the 2013 market is still far from normal, but its energy is contagious! So what’s contributing to the liveliness in the housing market?

A simple case of supply and demand plays an important role in Westport’s real estate market. There is a decline in inventory, forcing prices to at the least stabilize while also creating a need for new construction.  November 2012 offered a 9 month supply of inventory compared to a year earlier when there was an 18 month supply. December 2012 had 7 months of inventory compared to the prior year’s 15 month supply and January 2013 remained consistent with 11 months of supply, as in January of 2012.

During the last 2 years, I continually heard buyers say, “ I am not going to buy now, because prices are still dropping.”  While prices are not necessarily up, you will be hard pressed to find a knowledgeable investor who claims prices are down. With that said, buyers believe they are buying at the bottom of the market. There is pent up demand waiting to be released.

While mortgage lending can still be a labor intensive practice at the onset, a good mortgage broker can help you through the process. Mortgages seem to be getting approved faster than a year ago with credit restrictions easing. Appraisers have a greater number of comparables to work with, since more properties have sold, making a fair and accurate appraisal easier to obtain. Interest rates, while creeping up slightly, are still historically low.

In addition, the rental market has been tremendously strong. Vacancy rates have plunged while rental rates have increased. With monthly rental prices rising, homeownership is often becoming a more viable option.

There are still terrific deals for qualified buyers in the marketplace. Sellers should not mistake a strong market with a rising market. Prices are stable. They are still not up enough for sellers to start raising their asking price. Our buyers are educated and ready to react, but they will not over pay.

Have your Real Estate Agent provide a Comparable Market Analysis (CMA) to properly price your home, and be ready to reap the benefits of a strong and active market.