Hi Prospects & Friends!
Increased housing inventory means more homes are entering the market, and this macroeconomic factor will cause more competition among the homes already in the market if the homes are cheaper and offering more advantages than your home. To understand how to handle increased housing inventory entering the market, if you already have a home on market would be to analyze the increased inventory homes entering the market first, and see if they are comparable to your home with having a CMA done by a real estate broker. The CMA will provide a competitive edge showing key factors on where the market is being driven with characteristics of the comparable homes and why. If the increased inventory of homes homes aren't comparable, then you still have to make sure their not cheaper if better than yours, and if they are, then this is a issue where if your appraisal is accurate on your home, then you can be at ease and not let it bother you and remain firm with your price. Eventually the increased inventory of homes entering the market will sell off and close out if they're more competitive than your home, but cheaper. A key factor to understand is increased inventory of homes do trigger higher DOM if their competitive advantage is better but cheaper.
