Homebuyers are flooding the housing market right now to take advantage of record-low mortgage rates. Many have a sense of urgency to find a home soon since experts forecast a steady rise in both rates and home prices this year and next. As a result, buyer demand greatly outweighs the current housing supply. Here’s how the shortage of houses for sale sets yours up to be the oasis in an inventory desert.
According to the National Association of Realtors (NAR), today’s housing inventory sits at an incredibly low 2.1-month supply, far below the 6-month mark for a neutral market. Inventory of single-family homes a year ago was already very low, and as you can see in the graph below, this year’s levels are even lower:
Due to these market conditions, today’s buyers frequently enter fierce bidding wars while trying to purchase a home. This in turn drives up home prices and gives sellers incredible leverage in the negotiation process, two big wins if you’re going to sell your house this year.
Bottom Line
In such a hot market, it can feel as though the supply of homes has virtually dried up, leaving buyers to wander in an inventory desert. That’s why there’s never been a better time to sell. To a parched buyer needing to secure a home as soon as possible, your house could be a true oasis.
To view original article, visit Keeping Current Matters.
Why You Don’t Need To Fear the Return of Adjustable-Rate Mortgages
If you’re worried today’s adjustable-rate mortgages are like the ones from the housing crash, rest assured, things are different this time.
Why Median Home Sales Price Is Confusing Right Now
Median home sales prices change because there’s a mix of homes being sold is being impacted by affordability and mortgage rates.
People Want Less Expensive Homes – And Builders Are Responding
Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that’s really needed.
Don’t Expect a Flood of Foreclosures
Before there can be a significant rise in foreclosures, the number of people who can’t pay their mortgage would need to rise. Since buyers are making their payments today, a wave of foreclosures isn’t likely.
Where Are People Moving Today and Why?
If you’re thinking of moving, you may be considering the inventory and affordability challenges in the housing market and how to offset these.
There’s Only Half the Inventory of a Normal Housing Market Today
If you want to list your house, know that there’s only about half the inventory there’d usually be in a more normal year.