The Impact of A Lack Of Housing Inventory
As the housing market travels down the road to complete recovery, the housing bust of a decade ago is a faded memory. Home values have increased, home and condo sales are up, and distressed properties (short sales and foreclosures) have dropped to the lowest points in years. Forecasts for the housing market the rest 2018 is a continued strengthening.
However, the shortage of inventory may be a cause for concern. Buyer Demand typically rises during the summer months, however, the supply of properties is not keeping up with the demand.
Industry Expert's Take
NAR's Chief Economist, Lawrence Yun was quoted as saying, "The worsening inventory crunch through the first 3 months of the year inflicted even more upward pressure n home prices in a majority of [real Estate] markets. Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds."
Freddie Mac Chief Economist, Sam Khater added, "As we head into late spring, the demand for purchase credit remains rock solid, whoch should set us up for another robust summer home sales season. While this year's high rates - up 50 basic points from a year ago - have put pressure on the budgets of shome home shoppers, weak inventory levels are what's keeping the housing market from a stronger sales pace."
Javiar Vivas, Realtor.com's Director of Economic Research said, "The dynamics of increased competition and buyer frustration are unlikely to change...In fact, the direction of the trend is pointing to a growing mismatch between the pool of prospective buyers and existing inventory."
If you are considering selling your home or condo, now may be the time. Buyer demand for your property will be strong at a time when there is little competition. This may mean a fast sale at a great price.
To begin the home-buying or home-selling process, contact us today.
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Disclaimer:The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia PA and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia PA and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.