Recently and even most of last year many of my clients, both buyers and sellers, have been asking me the following questions in our initial consultations.

Home Buyers: Do you think there will be an influx of inventory coming on the market this spring?

Michael DiMella posted an excellent graph clearly indicating when new inventory typically hits the market.  But the bottom line is this. He debunks waiting until spring, and I agree. Unfortunately I do not see an influx of inventory hitting the “city” market that will result in a less competitive atmosphere for today’s buyers until we see sellers coming to play within 95/495. Typically you see condo owners (especially first time condo buyers) buy and hold for about 5-7 years, then they look to the burbs for larger homes to start/raise a family.

What we’re experiencing now is that these buyers are staying put and making due within the city because they have been unable to find what they want in the burbs.

So the question remains why aren’t these baby boomers or retirees in the burbs down sizing and putting their homes on market?

Well I am surely no economist but one of a several reasons I’m sure of besides economic conditions could very well be the lack of inventory in the city once again as many of these people down sizing come back to the city for a multitude of reasons. Good news is that there is a lot of new construction under way in Boston which I will touch on a later blog.

Sellers: Should I wait to put my property on market in the spring so I have more inventory to look at to purchase a new place?

This question makes me nervous for sellers who wait as I saw last year’s spring market come actually start in late January and throughout February so inventory never had a chance to catch up. What I mean by this is that is, yes I surely anticipate more inventory to come on market in the “Spring Market” but there will also be that many more buyers out in the market looking. If what I think happens (which was the case in 2012) the amount of inventory will basically match up with the amount of that many more buyers coming to the market which will result in just as a competitive market we are in now if not more!

The time to buy is sooner rather than later

Okay so if you are a potential buyer now you’re saying well what the heck am I supposed to do!? It’s so competitive out there, I don’t want to over-pay or have to settle on a home that is not perfect.

The facts and data show that people are still buying and selling out there and actually Boston condo sales were up over 20% in 2012 and it is a great time to buy and experts have projected that real estate prices are actually going to go up as much as 6% throughout 2013.

I think the key thing here for buyers (especially in this market) is getting educated on current market conditions and paying attention to every new listing fitting your criteria that hits the market. I’ve had to help educate several buyers throughout 2012 that a “deal” currently is frankly just being able to get a property (win out over other offers or time your offer right to avoid multiple offers, etc). Obviously all the while being sure he/she does not overpay.

That being said, given current interest rates and rising prices, if a buyer is planning on holding their home for 3+ years, even going over $10K what may be perceived as the market value of a property can still make for a good decision. It gets him or her in the home they want for the long run, prior to future price increases and higher interest rates.