Sotheby’s Realtor Susan Holey offers advice on finding a home when inventory is low
For so long, since the stock market crash of 2008, the balance of power in the Greenwich housing market has been in the home buyer’s favor. The pandemic changed that almost on a dime. Normally, this time of year, there would be approximately 500 active single-family Homes (SFH) on the market. Currently, more than two years since the start of the pandemic, there are just over 200 SFHs available for sale in Greenwich.
On the bright side, inventory is beginning to increase since the March low this year of just 144 SFH on the market. During the second quarter of this year 189 SFH closed, but 317 new properties were listed — a welcome trend for buyers.
But there is still a long way to go to get to the point where buyers have any leverage at all. In the meantime, what can buyers do in this low inventory market to increase their chance of success?
While more than half of all homes that sold during the second quarter had multiple bids, selling at or above the list price, almost half did not. Even with the housing shortage, today’s buyers want move-in-ready homes. A willingness to do work will reduce the competition for a home.
Being prepared to move fast is key. Have your pre-approval letter ready, an inspector lined up, and procure an attorney before you have a deal. Look for homes that have been on the market for a long time. Perhaps they are overpriced, and the seller may be more willing to negotiate. Lastly, given home prices are at a premium, look for long term upside: choose location carefully; know if the lot size allows for expansion, and look for anything that allows you to add value in the long run.