Dallas Flat Fee MLS Listing Broker predicts excess inventory in 2009.

Flat Fee MLS Listing Service broker NetOffer, Inc. keeps close track on inventory absorption rate and expects new listings will flood market in early 2009.

NetOffer, Inc. President Lee Thurburn keeps close track on the inventory supply and absorption levels of residential property in North Texas. NetOffer, Inc. is the largest Flat Fee MLS Listing broker in N. Texas. NetOffer, Inc. has listed and sold well over 2,000 homes since entering the Discount Real Estate Broker business in 2004.

A recent analysis of changes in both listing and sales in the NTREIS MLS system that REALTORS use in the DFW area indicates that Sales are down approximately 10.5 % and Listings are down 18.7% through October 2008 compared with the average for 2005 through 2007. Presented below are two graphs that show 2008 Listings and 2008 Sales versus the average for the prior 3 years. The first graph is Sales. The second graph is Listings.

Over the last 3 months the number of clients who have either postponed listing their home of have taken their home off the market has increased. The number of people wanting to sell their homes but not wanting to place their home on the market during a down market has increased. While a certain percentage of these patient Sellers will continue to wait for the market to rebound many will loose patience and try to sell their home when the first indication of strength returns to the market.

Traditionally the months of May and June of each year represent the peak in Sales while December and January represent the low point in the seasonal cycle. Traditionally there is an upward spike in Listing activity in January as sellers who held off listing their home from mid-November through New Years proceed to place their homes on the market with the advent of the new year. This year the combination of the normal seasonal cycle along with the pent up backlog of listings waiting for the market to turn are likely to exhibit a relatively large upward spike in listing activity starting in January and continuing through the Spring busy season.

The problem is that with the weakness in the credit markets and the continuing push by lenders to require that Buyers exhibit higher credit levels along with greater down payments the increase in absorption is not likely to be greater than the increase in inventory. The result is likely to be an increased downward pressure on sales prices as the excess of supply over demand becomes greater.

One way for Sellers to insure that they get the maximum value out of their property is to use a discount real estate broker service offering a Flat Fee MLS Listing Service to keep the listing commission to just a few hundred dollars.  By lowering the fee that is paid to the listing broker the Seller has the option to reduce their price and make their home more competitive increasing the level of showings and the probability of a quick sale.