by Rich Rodenburg, Nebraska Home Sales Associate Broker
May is traditionally one of the hottest, if not the hottest, month in real estate. Especially in a city with four seasons and beautiful springs. Maybe it’s a natural nesting instinct. Maybe it’s recovering from cabin fever.
It seems this spring is no exception. A shortage of inventory is only trumped by the pool of buyers competing for the right home. It is typical to list a home (especially in the $100,000 to $250,000 price range), have fifteen or more people come through on the first day, and tender half as many offers. Homes are purchased and lost with offers $5,000 – $10,000 over asking price.
For my weekly radio show (KFOR, 1240AM and 103.3FM), Saturday mornings at 8, I like to process a couple of stats to keep pulse of our active market. One is the number of active existing Lincoln homes for sale. I remember when that number was more than 700 available homes. Today, that number is only 261. The other statistic I track is the number of homes currently under contract (purchased, and waiting the month or so to close). That number more than doubles the amount still for sale. Right now there are 526 homes pending closing. The median days on market of those pending is 3. You are reading that correctly… .Half of the homes currently under contract, sold in 3 days or less!
What strikes me is the discrepancy in value of the homes still on the market and those that are selling. The median price of active listings is $337,500. The median price of those who found buyers is $191,000 (and that is up from $165,000 a few short months ago). If you do the math, there is about a $147,000 discrepancy between the median price of homes for sale and sold homes.
So, it’s really NOT that fewer homes are coming up for sale. It IS that there are more buyers right now than sellers, especially in that mid-price sweet spot.
Moral of the story? Use the expertise of a REALTOR whether buying or selling, regardless of price range. In this fast and furious market, you need a professional to help you navigate through the craziness.