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 &
short sales) are at their lowest mark in over 8 years. This has been,
and will continue to be, a great year for real estate.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. According to the National Association of Realtors (NAR),
buyer traffic and demand continues to be the strongest it has been in
years. The supply of homes for sale has not kept up with this demand and
has driven prices up in many areas as buyers compete for their dream
Traditionally, the winter months create a natural slowdown in the market. Jonathan Smoke, Chief Economist at realtor.com, points to low interest rates as one of the many reasons why buyers are still out in force looking for a home of their own.
the fundamental trends we have been seeing all year remain solidly in
place as we enter the traditionally slower sales season, and pent-up
demand remains substantial as buyers seek to get a home under contract
while rates remain so low.”
NAR’s Chief Economist, Lawrence Yun, points out that the inventory shortage we are currently experiencing isn’t a new challenge by any means:
has been extremely tight all year and is unlikely to improve now that
the seasonal decline in listings is about to kick in. Unfortunately,
there won't be much relief from new home construction, which continues
to be grossly inadequate in relation to demand."
labor markets and job growth have created more and more buyers who are
not just ready and willing to buy but are also able to. If you are
debating whether or not to put your home on the market this year, now is
the time to take advantage of the demand in the market.