A Lack of Listings Creates a Challenge in the Market
13 Mar 2017
“Inventory has been extremely light 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..”
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, 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 inventory.
According to the National Association of Realtors (NAR) buyer traffic and demand continues to be the strongest in years. The supply of homes for sale has not kept up with demand and this has driven prices up in many areas as buyers compete for their dream home.
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 of in the force looking for a home of their own.
“Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slow sales season, and pent up demand remains substantial as buyers seek to get a home under contract while rates remain so low.” Bottom line is a healthy labor market has created more and more buyers who are not just ready but willing to buy.
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