Housing inventory has been the lowest it has ever been in the last 30 years. Spring has traditionally been the busiest season for real estate. This is because buyers, experiencing cabin fever all winter, emerge like flowers through the snow in search of their dream home. Homeowners, in preparation for the increased demand, are enticed to list their house for sale and move to a home that will better fit their needs.
New data from CoreLogic shows that even though buyers came out in force, homeowners did not make the jump to sell in the second quarter of this year. Frank Nothaft, Chief Economist for CoreLogic had this to say: “The growth in sales is slowing down, and this is not due to lack of affordability. It is due to a lack of inventory. As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent. This is the lowest Q2 reading in over 30 years.”
CoreLogic’s President & CEO, Frank Martell, also added:
“Home prices are marching ever higher, up almost 50 percent since the trough in March 2011. Mortgage rates are keeping the market affordable from a monthly payment perspective. However, affordability will likely become a much bigger challenge in the years ahead. This will remain until the industry resolves the housing supply challenge.”
Overall inventory across the United States is down for the 25th consecutive month. This is according to the latest report from the National Association of Realtors. Housing inventory now stands at a 4.3-month supply.
Real estate is local.
Market conditions in the starter and trade-up home markets are in line with the median US figures. However, conditions in the luxury and premium markets are following an opposite path. Premium homes are staying on the market longer with ample inventory This highly suggests we are currently living in a buyer’s market.
Bottom Line
Buyers are out in force, and there has never been a better time to move-up to a premium or luxury home. Considering selling your starter or trade-up home and moving up this year? Let’s get together to discuss the exact conditions in your area.
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