2012 More Homes SOLD = Fewer “for sale”

Lots of talk about Low Inventory since Jan 1 2012. Most suggesting that there are fewer sellers who want to sell, or are able to sell. I’ve yet to see anyone point to the obvious conclusion…that fewer are “For Sale” because more “Have Sold”.

Looking at the 1st 6 weeks of 2012…yes inventory is much lower than 2009, but then 79% more homes have sold in the first 6 weeks of 2012 than in the same period of 2009. Result? Fewer are For Sale becasue 79% more have Sold.

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Given the Tax Credit boosted the number of sales from 1,114 in 2009 to 1,669 for the same period in 2010 , to be riding 19% higher than 2010 without a Tax Credit is pretty significant.

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When you strike a number for Standing Inventory at the end of a month and say it is “low”…remember to add back all the properties that have sold during the month.

Often fewer are For Sale…because someone else bought them.

King County – All Residential Property – Stats not compiled, verified or published by The Northwest Multiple Listing Service.

12 thoughts on “2012 More Homes SOLD = Fewer “for sale”

  1. But obviously fewer than normal are being listed to maintain expected inventory levels–don’t think there’s been a recent unusual event or incentive to pull forward demand, so think it’s safe to say inventory really is “low”…

    • I just read a comment over on Seattle Bubble that there were only 21 homes for sale that met his/her general criteria and only 9 homes that met his/her specific criteria. “Only” 9? Maybe it’s time to reset expectations. 9 that meet his specific criteria in one given area…is a LOT!

      Sometimes people think they will have 20 good homes to choose from. Rarely is finding even 3 good homes to choose from an option at any given point in time.

  2. I have a buyer client who started looking in December. There was nothing for them. Today I pulled 19 to fit the criteria they gave me. It’s a big area, but the search gave me 151 listing under $200K.

    19 out of 151 isn’t bad. I’m seeing more reasonable inventory. One estate sale has come down in proce $60K.

  3. Is the conclusion here then that property is selling faster and giving the impression of low inventory to new buyers who look at estate agents portfolios?

    • We don’t really have “estate agent’s portfolios” here, Conveyancing. All property for sale is commingled into an mls system where all agents share their inventory with one another and the public at large via the internet.

      Not necessarily selling “faster” as many of those homes sold in the 1st 6 weeks of 2012 were not New on Market since Jan 1. But there are obviously more buyers and closings this year than in the last 3 years, leaving fewer good homes on market.

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