The Impact Of Tight Inventory On The Housing Market

Dated: 01/09/2018

Views: 78

Image title

The Impact of Tight Inventory on the Housing Market

For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers

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.”

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.

Contributor
Charles R Juarez Jr


Blog author image

Charles Juarez

With my expertise in reality for both buying or selling a home in San Antonio, and surrounding areas. You have found the right resource for your real estate needs. Whether you are looking for a new ho....

Latest Blog Posts

5 Tips For Starting Your Home Search

5 Tips for Starting Your Home Search Wednesday, October 17th, 2018  First Time Home Buyers, For BuyersIn today’s real estate market, with low inventory dominating the

Read More

Mission Caliza Springs Video

The Mendez Group, Realtors your New Home Experts! Providing you with New Home communities and staying up-to-date with the San Antonio and Surrounding Markets. Caliza Springs with Texas Homes is a

Read More

Baby Boomers Are Downsizing Are You Ready To Move

Baby Boomers are Downsizing, Are You Ready to Move?Baby Boomers, For Buyers, For Sellers, Housing Market Updates For a while now baby boomers have been blamed for a portion of the

Read More

Caliza Spring By Texas Homes Preview

Caliza Springs with Texas Homes.John and I are visiting this new community this week. 21543 Vista De Cristal SA, TX 78259This 9.9 acre community is nestled in the heart of the Encino Park

Read More