As we begin the last month of a banner real estate year, I want to address low inventory and what that means for our market. As a result of COVID-19 and changing lifestyles, we have had record-breaking home price appreciation, increased equity in our homes, competitive mortgage rates, and low inventory.  

Sellers remain firmly in the driver’s seat controlling this market. Historically, a 6-7 month supply of homes for sale is needed for a normal or neutral market where advantage is equal to both Buyers and Sellers. That level ensures there are enough homes available for active Buyers. 

The latest data from Patrick Carlisle, Chief Economist for Compass, shows the inventory of houses for sale in Lamorinda sits at less than a one-month supply. This is well below a neutral market. 

What Does That Mean for You?

When the supply of homes for sale is as low as it is today, it's much harder for Buyers to find homes to purchase. This drives up competition among Buyers, who then submit increasingly competitive offers to win against others in the home search process. As this happens, prices rise and a Seller’s leverage rises too, putting the Seller in the best position to negotiate a contract that meets their ideal terms.

And while the low housing supply we’re facing won’t be solved overnight, if homeowners are considering selling, they should move quickly to maximize their potential and take advantage of this unprecedented Seller’s market. 

Bottom Line…

Nobody has a perfect crystal ball, but because we sell over an average of $1 Million dollars of real estate a day, we have incredible insight into this market! We leverage our data, negotiate and write offers weekly, and are always willing to share our thoughts! Check in with our listing or buying agents today to design a winning strategy for 2022.

Dana Green