How A Lack of Inventory Impacts the Housing Market

Rhonda Hood June 19, 2018

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. 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. Buyer demand naturally increases during the summer months, but supply is not keeping up.

Here are the thoughts of a few industry experts on the subject:

Lawrence Yun, Chief Economist at National Association of Realtors

“The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets. Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.”

Sam Khater, Chief Economist for Freddie Mac

“As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season. While this year’s high rates – up 50 basic points from a year ago – have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace.”

Javier Vivas, Director of Economic Research forRealtor.com

“The dynamics of increased competition and buyer frustration are unlikely to change…In fact, the direction of the trend is pointing to a growing mismatch between the pool of prospective buyers and existing inventory.”

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.

We hope you appreciate this kind of information…To get Real Estate info & community events directly in your inbox by enrolling below.

Call The Mountain Life Team | KW Realty Partners and we can help you along your real estate journey. Incredible things are happening here in our beautiful mountains. You won’t be disappointed with the rich Blue Ridge Mountain heritage of your new mountain community. Enjoy the mountain life in the beautiful North Georgia!  706-633-8186 or email us at info@themountainlifeteam.com.  #LiveTheMountainLife  #KWRealtyPartners #DontBeScammed #1kw

See amazing mountain properties and sign up to get this info directly to your inbox below!

Email address

Contact Us!