The major challenge in today’s housing market is that there are not enough homes on the market for the number of buyers. Simply put, supply can’t keep up with demand. Fortunately, it seems as though change might be on the horizon.
A typical market has a 6-month supply of homes for sale. Anything over that indicates it’s a buyers’ market, but an inventory level below that results in a sellers’ market. Right now, we are in the midst of that sellers market.
Unsold inventory sits at a 2.4-month supply at the current sales pace, slightly up from March’s 2.1-month supply and down from the 4.0-month supply recorded in April 2020. Basically, while we are seeing some improvement, we’re still at near-record lows for housing inventory. It’s going to take some time to see these numbers change.
Since the start of the pandemic, sellers have been hesitant to putt their homes on the market. Due to today’s low mortgage rates, at the same time that fewer people are listing their homes, more and more people are trying to buy them.
This inventory shortage doesn’t just apply to existing homes that are already built. Due to challenges with things like lumber supply, builders are also not able to keep up with demand.
Despite today’s low inventory, things are starting to look up for residential real estate inventory. There is hope on the horizon for buyers who have been struggling to find their perfect home during the pandemic. As the country continues to reopen, more houses are likely to be listed for sale. However, it will take time for the supply and demand to truly balance out.
Although it may be challenging to buy a home in today’s market, there is change on its way. Let’s connect to work together to find your dream home this summer!