Every now and then I receive an inquiry regarding the overall inventory in the NABOR MLS. Do we have too few listings? Do we have too many listings? As a large broker in town, what do you think regarding the current amount of listings in the MLS?
To form an opinion on the current amount of listings in the NABOR MLS, you have to look at history. In March of 2007, NABOR had 12,440 listings in the MLS. The March 2007 listing total I believe was an all-time high. It wasn’t until June of 2009 that the NABOR listings dipped below 10,000 properties.
From June of 2009 until December of 2012, we saw a steady decline in MLS listings with NABOR reporting 6,557 listings in the MLS at December 31, 2012
In July of 2015, NABOR’s listing base dipped to 3,518 listings. Since then the listing inventory has improved so that we currently have 6,071 listings as of January 31, 2018.
Looking at the economic principle of “supply and demand “, too much inventory is a problem when there is weak demand. That is what we experienced in March of 2007. This largely caused the low pricing in 2007. Conversely, if the demand is strong and the listing inventory is low, you should expect the free market to drive up the pricing of local properties. We saw that in July of 2015 when inventory was low and demand was high.
Currently I feel that we have an adequate amount of inventory. It is not high enough to cause alarm, Truthfully, I feel that we could use some more inventory. It is also not low enough to be a problem for buyers. We have an inventory base right now that has plenty of inventory on the menu for buyers in all price ranges. I wish we had a little bit more inventory below $200,000 but we do have some inventory in the lower price range.
We are off to a good start with sales in 2018. It remains to be seen what impact these sales will have on inventory (and pricing ).
Mike Hughes, Vice President
Downing-Frye Realty, Inc.
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