Everywhere you look, you’re seeing media report that there are housing shortages all over the country. And Sioux Falls is no different!
Evidently, there are more home buyers interested in purchasing real estate right now in the country than there are home sellers willing to list their property.
This has created a tight market that’s actually driving up prices as some home buyer engage in bidding wars.
To prepare you for navigating the Sioux Falls housing market under these conditions, we wanted to write today’s blog on navigating these shortages.
First, A Little Context About Shortages
According to Realtor.com, there were nearly 9 percent fewer homes for sale in January 2015 as there were in the previous year.
And half of the 200 markets that Realtor.com tracks experienced year-over-year price increases of at least 6 percent in January.
Here’s what else you should know about the market:
- The month of January saw an unexpectedly large drop in home sales, down nearly 5 percent from the same month last year.
- Part of the problem is that somewhere between 7 million and 10 million borrowers are underwater, deterring them from wanting to list their property.
- During this same period, first time buyers’ share of the market dropped in January to only 28 percent of home buyers.
So What Should You Do As a Home Buyer in a Housing Shortage?
Here are some tips on how you can still ensure a successful outcome if you’re a home buyer on the Sioux Falls housing market and you’re facing a housing shortage:
Look for expired and withdrawn listings. Often, homes fail to sell because they were overpriced at the time. So reach out to the owner of the house and see if they’d be willing to lower their price if it meant they could sell their home.
Search for Make Me Move prices. This is a service that allows home sellers to identify the price that would make them move, even if they weren’t actively selling. Reach out to them with an offer and see what happens!
Check rental listings. Sometimes, home owners may be forced to rent their old home if they suddenly had to move for a job transfer, divorce or other life change. So reach out to them to see if they would be interested in selling that property and getting out of the rental business altogether.
Don’t discount overpriced listings. Yes, it’s true that it is currently a seller’s market in Sioux Falls and that there is more demand than supply, which can be beneficial for sellers. But at the same time, anyone is going to get tired of their home for sale languishing on the market. After several weeks on the market, you will be able to move in and make an offer, giving them an out from the process of home selling, which can sometimes be an exhausting process.
We’re Your Dedicated Sioux Falls Real Estate Experts
We hope you’ve found the above information insightful as a potential home buyer or home seller in Sioux Falls. After you’ve done your research, if you need assistance on how to make an informed offer, be sure to connect with us! You’ll definitely want to take advantage of our search tools and instant notifications — you can sign up to be notified as soon as properties that meet your criteria are listed on the market. Don’t let your dream home slip away!
Until next time,