Future Of Inventory

The single biggest factor in the meteoric rise in real estate prices is inventory. We have seen a record low inventory which has persisted for months on end now. The main question is, when will inventory increase to help the skyrocketing home prices? Well, there could be some positive news coming out for first-time home buyers in the near future. According to a recent survey from NAR (National Association of Realtors), the single hardest challenge is what we mentioned: inventory. So, here is what the future of inventory in the housing market looks like.

For those who are genuinely looking for a chance to buy a home, you probably have noticed the inventory problem yourself. In fact, we have had open houses where the traffic was so bad that we should have hired traffic deputies. Recent data shows that more people are listing their homes this season, luckily for buyers. This may allow you to have access to more options in your home search in coming months.

Future Of Inventory May Be Bright

Early signs of relief from record low inventories look promising. Realtor.com data shows that the number of listings that have been placed on the market has increased since the start of the year. This could mean a better chance for buyers to find their dream home. However, this could also lead to a record amount of homes sold, topping last year’s 15 year record. In the graph below, you can see the number of listings (per thousands) coming to the market each month.

This data is indicating that sellers are listing their homes at a higher rate than previous this year. According to realtor.com again, this growth is expected to continue, a promising sign for buyers. The research conducted from their economists finds that the majority of potential sellers are planning to list their homes in the next six months. Realtor.com says:

“. . .markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.”

Homes Are Selling Quickly

While the increase in listings is a positive sign, these homes are still selling very quickly. In fact, days on market still continues to trend lower, a struggling sign for potential buyers. The latest Realtors Confidence Index from NAR displays the median days on market. This shows the homes that were recently listed are selling in record times. Since last year, the typical time-on-market has decreased month-over-month. The data shows that homes are selling faster than they did in previous months.

What This Means For You

For buyers, low inventory means high competition and less options. For sellers, this means that you have as many eyes as possible on your home. In fact, because of record low inventory, sellers continue to remain with the upper-hand in the market. Until something is pushed to the breaking point, expect prices to increase and inventory to slowly follow. Mortgage rate uncertainty can change the course of action for everyone. A 3% mortgage right now is your best asset, so people will likely stop selling in the future months.