It’s no secret that the Gulf Coast real estate market has seen an uptick in the past few months due to pent up demand from COVID-19 coupled with historically low interest rates. But a lesser known factor is also affecting our current real estate boom: low inventory due to people selling their homes less frequently.
According to the National Association of REALTORS®, the median amount of time U.S. homeowners stay in one place is 13 years, up by three years since 2008. While the reasons behind that increase vary by market – and sometimes vary within price points in the same area – increasing home prices are a motivating factor as well as low inventory. “As data reveals, the median home price of recently purchased homes was 10 percent higher in the areas with a median homeownership duration above 13 years compared to other metro areas,” NAR explains.
That can lead to a bit of a chicken-or-the-egg scenario when determining if high housing prices and low inventory is the reason people are saying put. Or is it vice versa? In truth, the factors influence each other.
The extent of that influence contributes to the hyperlocal differences in housing markets. For example, Baldwin County residents typically stay in a home for 9 years while Mobile County residents stay for 15 years, based on NAR statistics. While neither county’s supply is high, the 1.2 months of home inventory in Mobile in July 2020 versus 2.2 months in Baldwin County for the same month help explain the time difference between the two counties.
Baldwin County residents typically stay in a home for 9 years while Mobile County residents stay for 15 years.National Association of REALTORS®
Even if you planned to stay in your home for as long as possible due to one of the reasons above, now may actually be your best opportunity to sell regardless of whether you call Baldwin or Mobile County home. Of course, potential sellers must weigh the benefits with the possibility of needing to find a home quickly themselves. Contact a REALTOR® to discuss all the options you have available. You never know. Now may be the best time for you to make your move!