NAR is reporting that overall housing inventory fell 3.5% to 3.8 million units for sale in May. To put this in perspective, that is a drop of nearly 2 weeks of national inventory in one months time. (10.1 months of inventory in April to 9.6 in May)
What’s stalling even more progress?
Appraisals….NAR chief economist Lawrence Yun has verified what every Real Estate Agent already knows…. appraisers are killing deals right now with extremely conservative valuations. To put this in basic terms….. buyers and sellers are coming to agreements at certain prices, however, appraisers are often appraising the property at a value well below this amount. As a result, the # of closed sales reported in May is well below what it could have been.
How does information relate to Congress Realty?
We have seen an enormous increase in offers in CA, NV, and AZ over the past 8 weeks. We have also seen a large # of escrows cancelled because of low appraisels. Our sellers should be informed of their surrounding comparables and be willing to share their pricing data with appraisers before the appraisal is completed.