Taking Stock of Real Estate Inventory

For the better part of this year much of the story in real estate has been about inventory, or more precisely, the lack of inventory in the current marketplace.

Ideally, according to past reports of what experts consider a stable housing market, inventory levels should be enough to handle 5-7 months’ supply of consumer demand.

Average inventory levels of resale homes right now that are available to ready, able buyers is only about 2-4 months’ supply. 

Move in ready homes, particularly those priced at market value, are actually being snatched up quite fast, though you won’t see this reflected in the statistics.  When you look at Days on Market stats, which are currently averaging 20 throughout the state, you aren’t seeing an accurate portrayal.  This is because those statistics include everything available for sale in the market.  Foreclosures, short sales and resale times are lumped together for that statistic.

Though the inventory numbers are much lower than desirable for what we’d call a stable market, looking beneath the surface of just percentage and statistic numbers, the happy fact is that sales have grown steadily when considering year over year numbers and not just month to month.  This is especially encouraging when combined with the quick turnaround times we are seeing and offers that are very close to or at list prices.  All very good news for those who have been contemplating selling a property.

Affordability has improved greatly as well, which gives us even more good news to share.  With close to 80% of homeowners enjoying restored equity gains, the incredibly low interest rates on home mortgages has kept ownership well within the reach of those who want to buy.

So what does this mean for the average real estate consumer?

·         Brisk sale activity – if you’ve been thinking of selling you’ll want to take advantage!

·         Affordable home prices – if you’ve been thinking of buying don’t wait!

·         Attractive loan rates – making new purchase or refinancing a good choice!

·         Fast market times – demanding decisive action on your part!

·         Increased financial benefits – these include benefits to sellers and to buyers!

New home building is beginning to catch up to demand as well, with home builders returning to levels we haven’t seen since the early 2000’s.  A few economic considerations have slowed down builders’ response times to the current demands, but this segment of the industry is catching on that housing is finally and truly back with a capital B!