If you've even read one real estate headline in the past few years then you already know the "issue" with today's real estate market.  INVENTORY.  But how is inventory measured in real estate and how does it affect your bottom line?

In the housing industry we use the term "months of supply" to tell us how much inventory of homes for sale we have on the market.  The months of supply is the time it would take for all the current inventory to sell if it all sold at the current rate without new inventory coming on the market. But how to calculate months of supply you ask? We calculate that number based on the number of houses currently for sale divided by the average number of homes sold per month.

Generally, a 6 month supply of inventory would indicate a "balanced" real estate market. More than 6 months of inventory would indicate a buyers market and less than 6 months of inventory would indicate a sellers market.  Currently, Rhode Islands real estate supply sits at just 2.5 months of inventory, a sellers market.  Simply put, there's A LOT more buyers than there are homes for sale.

 

What does it mean for you and your bottom line?

A look at the most recent sales statistics published by the Rhode Island Association of Realtors shows that average home sale prices have risen by 11% year over year.  Also, the number of new homes coming on the market has decreased by 40.6% while the number of homes pending increased by 43.5%!  These figures show that supply over the next few months will decrease even more which will further drive home prices up this fall.

And although we're in a "sellers market", historically low interest rates have offset a huge portion of the increasing home prices.  Just like last year, buyers are tripping over themselves to put offers in on new listings. It's a rare time in history where it's great to be a seller AND a buyer.

Have you been thinking about upsizing, downsizing or relocating? There's never been a better time to get THE MOST money for your home and use the incredibly low interest rates on your next purchase!

Questions about your specific situation? We love to help!  Call us today at (401) 949-500!