Tips For Home Buyers In A Low Housing Inventory Market
Currently in early 2023 the Lake Placid region is going through a shortage in the number of houses available on the real estate market for sale. This is due to three main reasons:
- The time of the year: People generally do not like to move during the winter or holidays
- Higher interest rates than we have seen in the past two years making buyers wait on getting pre-approval letters from the bank
- Low inventory in other areas where sellers may want to move, which delays their house selling timeline.
The current time frames for selling homes in the Lake Placid region are around what we saw pre-covid pandemic, after a burst in demand led to rapidly selling inventory the past few years.
Our office continues to receive calls about properties but the urgency to purchase has slowed for most buyers who contact us. As usual, properties that are in a desirable area and at the right price are going under contract relatively more quickly than some with fewer features. This timing can make it harder for some buyers that urgently want to find the home that fits their needs, with low housing inventory to purchase. For home buyers looking to buy a home as soon as possible, we suggest working with a strong real estate agency, being flexible on desired home features and being ready to move quickly toward making a qualified offer to buy.
Contact A Proven Local Real Estate Agency
While it might be enticing to try to go at it alone when purchasing a home, working with an experienced local strong real estate agency will give you that leg up to find the home of your dreams more quickly. High-performing real estate agencies and agents generally have better conversion rates on selling homes which leads to more opportunities to list properties. Working with the right group could provide you with early knowledge of properties before they officially come on the market with an MLS listing. This early knowledge can give you the opportunity to view or purchase the home before the initial rush of potential clients from other agencies and is one of the top reasons to work with a strong local realtor to find your home.
Flexibility On Features
Every homebuyer has an idea of what they are looking for in a home but having some flexibility on what you are looking for will make it easier during a low housing market. Our office suggests making a list for what you are looking for in your home. After you make the list break it down into a deal-breaker list and “a nice to have but could always add on or live without” list. With a limited market you may be able to get everything on your deal breaker list and just miss a few things on the nice to have list.
Deal-breaker lists for prospective home buyers normally include a price threshold, living in certain school districts, the number of bedrooms and bathrooms, or even fewer common needs such as accessibility. “Nice to have” list items might include granite counters or other luxuries that are nice to have but could always be added in the future, such as outdoor decks or entertainment features. This flexibility will make the search for your new home a little easier and open up more potential homes to your search.
Be Ready To Move Quickly
Buyers who are seeing new homes during a low housing inventory market need to make sure to have a cash-purchase or mortgage pre-qualification letter and their financing mechanisms in order. Similar to the height of the market during the Covid pandemic, interested buyers need to prove they are ready and financially able to move on purchasing the home. While most homes are taking longer to get qualified offers, there are still some that are going to contract quickly. If the home is in a desirable neighborhood and at the right price it could be under contract within a day or two of listing it on our Multiple Listing System (MLS). This system provides all of the offices who are connected to it the information about available properties throughout the region. Making sure you are ready to move quickly with clear financial support documentation and fewer contingencies in the offer will only increase your chances of winning a competitive bid for the right home.