The real estate market is moving more and more into a complete
recovery. Home values are up. Home sales are up. Distressed sales
(foreclosures and short sales) have fallen dramatically. It seems that 2017 will be the year that the housing market races forward again.
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 summer, supply is not keeping up.
Here are the thoughts of a few industry experts on the subject:
are in the driver's seat this spring as the intense competition for the
few homes for sale is forcing many buyers to be aggressive in their
offers. Buyers are showing resiliency given the challenging conditions.
However, at some point — and the sooner the better — price growth must
ease to a healthier rate. Otherwise sales could slow if affordability
lack of inventory is very real and could have a severe impact on home
sales in the months to come. Traditionally, a balanced market would
have an MRI (Months Remaining Inventory) between six and 10 months.
month, only eight metros we track have MRIs over 10, compared to 27
last year and 48 two years ago—illustrating that this lack of inventory
is not being driven by traditionally ‘hot’ markets, but is rather a
broad-based, national phenomenon.”
housing inventory has been an important feature of the housing market
at least since 2016. For-sale housing inventory, especially of starter
homes, is currently at its lowest level in over ten years. If inventory
continues to remain tight, home sales will likely decline from their
2016 levels. …all eyes are on housing inventory and whether or not it
will meet the high demand.”
you are thinking of selling, now may be the time. Demand for your house
will be strongest at a time when there is very little competition. That
could lead to a quick sale for a really good price.