Home sales are up and distressed sales (bank owned, HUD, short sales) are going down. It looks like the real estate market is moving into complete recovery. This is fantastic news for 2017’s real estate trends. There is, however, one issue that can stop it all in its tracks. There are plenty of buyers and more looking to buy as we move into summer but the listing inventory is not keeping up with the demand.
Here’s what the experts have to say:
“Sellers 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 conditions worsen.” says Lawrence Yun, Chief Economist at NAR.
“The 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. This 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.” says Tom O’Grady, Pro Teck CEO.
And from Freddie Mac “Tight 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 market inventory and whether or not it will meet the high demand.”
If you have been considering making a changing and selling your home contact Julie & Company | HER Realtors. With a low supply of homes the odds of getting an asking, or close to asking, price offer on a home are greater while the days on market are typically shortened. Julie & Company | HER Realtors is also able to direct you to our vetted and professional vendors who are able to help you make the most of your home, buy a new home before selling your current home, or help you move cross country.
Curious what your home could be worth in today’s hot market? Click here for an instant home valuation report.