by Larry DeBerry
on Saturday, November 15th, 2014 at 1:25pm.
I was recently asked "when will it become a buyers market?" Great Question and a little difficult to answer, but I will do my best. The big driver of the "sellers market" that we are in is because of reduced inventory of homes for sale and the lack of new listings coming onto the market. Also, a key factor to all of this is that the days on market have been shortened greatly because of the lack of homes. So this means when a new listing comes on the market that it doesn't sit there very long. Things that could change this market is higher interest rates, which no one really wants to see or a slowing of the buying activity because of economic issues. I don't foresee the economy in Texas slowing down. It is one of the 'best" in the U.S. The trend is strong for the next 10 years or more. However, a federal issue or world issue could curtail that. We really don't want to see any of those things.Builders reduced their inventory during the crash and that led to their labor leaving to other parts of the U.S. to find work. Builders are very busy but home building times are longer than before because of the shortage of labor. They have also seen prices on material rise over this period as well. Once the inventory and sales become neutral then it is a market that is balanced and that is good for both buyer and seller. When there are too many homes on the market then prices of homes are much more competitive which favors the buyer. The housing industry is really about supply and demand. I hope that gives you some ideas of why we are in the market that we are in and realize markets do change over short periods of time. The thing to remember is that if you sell your home at a lower price then the next home you buy will be competitive as well. If you sell at a higher price because of the market, when you go to purchase you will be paying a higher price as well. So actually you get your money's worth in either market. If you don't have home to sell then, yes the market does make a difference.