How’s the housing inventory looking?
Let me first start by saying, housing inventory means how many homes are on the market for sale. The chart in the video shows that towards the end of last year and most of this year, housing supply had increased over last year. But, since July the level of housing inventory has taken a downward direction and the amount of homes on the market for sale is less than it was last year.
What has caused this fall in inventory?
This has been caused by the whole percentage point drop in interest rates over the last year. A bit of a buying frenzy has been created as there aren’t enough houses for buyers looking to make a purchase before the end of the year. Luckily for buyers unable to find a home before the new year, Freddie Mac’s prediction, is that interest rates will continue to be favorable through next year as well.
Additionally, as we mentioned in last month’s episode, rent prices have continued to climb, making it very attractive to purchase a home instead of renting.
What does this all mean for sellers?
It means that now a great time to sell, while competition with other sellers is low. Inventory levels typically increase at the beginning of the new year and increase again in the spring.
Thank you to all of you for watching! We hope you enjoyed our market update!
And if you’re wondering if now is a good time to buy or sell, email or call us today!