"WHY ARE THERE SO MANY FOR SALE?"

I hosted an open house at my listing in River Bend on Sunday. The weather was fairly typical for an April day in Illinois. Wet and raw. Highs in the lower 50's...

Despite the inclement weather, the turnout was solid. Nine groups came through...

The comments were fairly consistent. Tons of space. Gorgeous windows. Love the neighborhood and the model...

"But why are there so many for sale?" many visitors asked.

"There must be 30 homes for sale!" said one very impressed yet concerned visitor.

"Actually, there are 15," I answered, knowing the conversation wouldn't stop there.

"Why so many for sale?" asked the gentlemen.

Hmmm. In just over three years as an agent, I have answered this question many, many times, especially in regards to River Bend.

Why are there so many for sale?

River Bend has 150 townhouses in it. 15 are for sale today. That is 10%.

Seems high, but maybe not that surprising...

First off, oversupply is common in today's market.

Secondly, I feel in developments such as River Bend that were built between 5 and 10 years ago, the drop in the market can be even more glaring...

The average buyer of a townhouse generally lives in it about 5 years. After 5 years, the typical buyer is looking for something a little bit different. Perhaps they have outgrown it? Maybe they want a yard?

So when a development reaches maturity (after it has been sold out for 5 years or so), many owners are just starting to get the itch...

In a good market, that supply is quickly gobbled up.

In a tougher market like we are facing today, the results can be quickly dropping prices as well as a glut of inventory.

And that is what we have seen in River Bend and many other neighborhoods like it.

"At the end of the day, the number of homes for sale is not your problem," I remind my would-be buyer. "It is your opportunity..."

Ken

A Realtor you can trust.