The Impact Of Tight Inventory On The Housing Market
The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up.
Here are the thoughts of a few industry experts on the subject:
National Association of Realtors:
“Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes
available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen
year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the
current sales pace, which is down from 4.0 months a year ago.”
Joseph Kirchner, Senior Economist for Realtor.com:
“The increases in single-family permits and starts show that builders are planning and starting new
construction projects, that’s a good thing because it will help to relieve the shortage of homes on
the market.”
Sam Khater, Deputy Chief Economist at CoreLogic:
“Inventory is tighter than it appears. It’s much lower for entry-level buyers.”
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up.
Here are the thoughts of a few industry experts on the subject:
National Association of Realtors:
“Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes
available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen
year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the
current sales pace, which is down from 4.0 months a year ago.”
Joseph Kirchner, Senior Economist for Realtor.com:
“The increases in single-family permits and starts show that builders are planning and starting new
construction projects, that’s a good thing because it will help to relieve the shortage of homes on
the market.”
Sam Khater, Deputy Chief Economist at CoreLogic:
“Inventory is tighter than it appears. It’s much lower for entry-level buyers.”
Bottom Line
If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price. Meet with me today, and I can explain to you exactly what’s going on in your local area!
If you have any questions about how to list your home and buy a new home simultaneously, just call/text me at 602-295-6807 and I can help answer all of your questions!
"Real Estate is not just a job for me, it's about making a difference in the lives of others"
Troy Erickson Realtor
Call/Text: 602-295-6807
[email protected]
Linkedin Profile
Facebook Page
If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price. Meet with me today, and I can explain to you exactly what’s going on in your local area!
If you have any questions about how to list your home and buy a new home simultaneously, just call/text me at 602-295-6807 and I can help answer all of your questions!
"Real Estate is not just a job for me, it's about making a difference in the lives of others"
Troy Erickson Realtor
Call/Text: 602-295-6807
[email protected]
Linkedin Profile
Facebook Page
Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.
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