Inventory Shortages Are Slowing Down the Market

Reblogger Les & Sarah Oswald
Real Estate Broker/Owner with Eastvale Team Realty & Property Mgmt BRE 01230211 & 01919354

This is a great time to be a seller. Strong buyers demand and short inventory spells great opportunity for sellers. If you are thinking of selling your home there really is no better time than NOW. Everything is lining up to indicate multiple offers, quick and expedient closings.

Don't just take my word for it. Check out what the national experts in the country are saying about our seller's market. 

Original content by Abby Stiller Lic. # SL3154233

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.

However, 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:

Lawrence Yun, Chief Economist at NAR:

"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."

Tom O’Grady, Pro Teck CEO

“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.”

Ralph McLaughlin, Chief Economist at Trulia

“Nationally, housing inventory dropped to its lowest level on record in 2017 Q1. The number of homes on the market dropped for the eighth consecutive quarter, falling 5.1% over the past year.”

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 inventory and whether or not it will meet the high demand.”

Bottom Line

If 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.

 

 

Posted by:_________________________________________________________________________________________

Abby Stiller
Realtor® - Lic. #SL3154233
Premier Realty Homes of SWFL
Cell: (239) 284-8637
10 years of Experience
Your Local Market Specialist! - Home Enthusiastic!


Offices: Bonita/Ft. Myers, Cape Coral, Marco, Naples and the Beaches

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Rainmaker
151,564
Abby Stiller
Premier Realty Homes of SWFL - Cape Coral, FL
Real Estate Agent Serving Southwest Florida

Thank you for reblogging my post Les & Sarah Oswald . If anybody out there is thinking about selling their home, now is the time to do it. The market is HOT!

May 10, 2017 12:59 PM #1
Rainmaker
843,473
Les & Sarah Oswald
Eastvale Team Realty & Property Mgmt - Eastvale, CA
Broker, Realtor and Investor

Hello Abby Stiller

Great post!!! I agree with you. The time to sell is NOW!!! It just can't get any better if one is thinking of selling. Huge demand from buyers, quick appreciation, clean terms, multiple offers, short closing and most importantly...sellers are able to move on with their lives.

May 10, 2017 01:03 PM #2
Rainmaker
46,183
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

I agree. Lots of buyers out there, especially for the smaller homes. 

May 10, 2017 02:43 PM #3
Rainmaker
2,394,158
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

My take is that the inventory shortage is not slowing down the market rather it is only slowing down the sales, but agents and buyers are a lot more active, Endre

May 15, 2017 10:57 PM #4
Rainmaker
1,144,323
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

There is no doubt that the market recovery is being held back by a listing shortage, especially in the lower price ranges. 

May 17, 2017 11:33 PM #5
Rainmaker
3,606,706
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for reblogging the post. I missed reading the original one 

May 18, 2017 02:44 AM #6
Rainmaker
994,903
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Hi

Good repost with a nice, short summary of the experts telling it like it is. Definitely true here, cheers cvc

Jun 13, 2017 07:24 AM #7
Rainmaker
994,903
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Stopped back to say hello, cheers cvc

Jul 26, 2017 12:45 PM #8
Rainmaker
3,131,864
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Les and Sarah

Many parts of the country does not have enough inventory for sale to meet buyers demands.

Good luck and success.

Lou Ludwig

Jul 27, 2017 06:31 PM #9
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Rainmaker
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Les & Sarah Oswald

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