Jan 9 2018 14025 1

Dated: 01/09/2018

Views: 103

 

The Impact of Tight Inventory on the Housing Market

The Impact of Tight Inventory on the Housing Market | MyKCM

The housing crisis is finally in the rearview 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.


Blog author image

Richard Hewitt

As a life long resident of St. Clair County, only having moved away long enough to serve honorably in the U.S. Navy, I have the local knowledge to help guide my clients to a great outcome. I bring a t....

Latest Blog Posts

ST CLAIR COUNTY REAL ESTATE LISTS

Check out "HOW IT WORKS"  Play Video Below!!St Clair County Real Estate         Quick Links Page       Hello, I am Don Egypt "Your Realty

Read More

NAR Reports Show It's A Great Time To Sell!

NAR Reports Show It’s A Great Time to Sell!We all realize that the best time to sell anything is when the demand for that item is high and the supply of that item is limited. The last two

Read More

Price Reductions; what do they mean?

What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?Last week, in a new report from Zillow, it was revealed that there has been a rash of price reductions

Read More

Jul 20 2018 14025 1

 What You Need to Know About the Mortgage Process [INFOGRAPHIC]Some Highlights: Many buyers are purchasing a home with a down payment as little as 3%. You may already qualify for a

Read More