{"id":1115,"date":"2020-09-17T13:27:36","date_gmt":"2020-09-17T13:27:36","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=1115"},"modified":"2020-09-17T13:27:36","modified_gmt":"2020-09-17T13:27:36","slug":"low-inventory-may-impact-housing-market-fall","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/low-inventory-may-impact-housing-market-fall\/","title":{"rendered":"How Low Inventory May Impact the Housing Market This Fall"},"content":{"rendered":"
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How Low Inventory May Impact the Housing Market This Fall<\/p><\/div>\n

Real estate continues to be called the \u2018bright spot<\/em>\u2019 in the current economy, but there\u2019s one thing that may hold the housing market back from achieving its full potential this year:\u00a0the lack of homes for sale<\/strong>.<\/p>\n

Buyers are actively searching for and purchasing homes, looking to capitalize on today\u2019s historically low interest rates, but there just aren\u2019t enough houses for sale to meet that growing need. Sam Khater,\u00a0Chief Economist<\/em>\u00a0at\u00a0Freddie Mac,<\/em>\u00a0explains<\/a>:<\/p>\n

\u201cMortgage rates have hit another record low<\/strong>\u00a0due to a late summer slowdown in the economic recovery\u2026These low rates have ignited robust purchase demand activity\u2026However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the\u00a0lack of supply is already exhibiting a constraint on sales activity<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

According to the\u00a0National Association of Realtors\u00a0<\/em>(NAR), right now, unsold inventory sits at a 3.1-month\u00a0supply<\/a>\u00a0at the current sales pace. To have a balanced market where there are enough homes for sale to meet buyer demand, the market needs inventory for 6 months. Today, we\u2019re nowhere near where that number needs to be. If the trend continues, it will get even harder to find homes to purchase this fall, and that may slow down potential buyers. Danielle Hale,\u00a0Chief Economist<\/em>\u00a0at\u00a0realtor.com<\/em>,\u00a0notes<\/a>:<\/p>\n

\u201cThe overall lack of sustained new listings growth could put a dent in fall home sales despite high interest from home shoppers, because\u00a0new listings are key to home sales<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

The\u00a0realtor.com<\/em>\u00a0Weekly Recovery Report<\/a>\u00a0keeps an eye on the number of listings coming into the market\u00a0(houses available for sale)\u00a0<\/em>and the total number of listings staying in the market compared to the previous year\u00a0(See graph below):<\/em><\/p>\n

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Year Over Year Change in Listings<\/p><\/div>\n

Buyers are clearly scooping up homes faster than they\u2019re being put up for sale. The number of total listings (the orange line) continues to decline even as new listings (the blue line) are coming to the market. Why? Javier Vivas,\u00a0Director of Economic Research<\/em>\u00a0at\u00a0realtor.com<\/em>,\u00a0notes<\/a>:<\/p>\n

\u201cThe post-pandemic period has brought a\u00a0record number of homebuyers back into the market, but it\u2019s also failed to bring a consistent number of sellers back<\/strong>. Homes are selling faster, and sales are still on an upward trend, but rapidly disappearing inventory also means more home shoppers are being priced out. If we don\u2019t see material improvement to supply in the next few weeks,\u00a0we could see the number of transactions begin to dwindle again even as the lineup of buyers continues to grow<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

Does this mean it\u2019s a good time to sell?<\/strong><\/h4>\n

Yes. If you\u2019re thinking about selling your house, this fall is a great time to make it happen. There are plenty of\u00a0buyers<\/a>\u00a0looking for homes to purchase because they want to take advantage of low interest rates. Realtors are also reporting an average of\u00a03 offers<\/a>\u00a0per house and an increase in bidding wars, meaning the demand is there and the opportunity to sell for the most favorable terms is in your favor as a seller.<\/p>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re considering selling your house, this is the perfect time to connect so we can talk about how you can benefit from the market trends in our local area.<\/p>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Real estate continues to be called the \u2018bright spot\u2019 in the current economy. Finish Reading How Low Inventory May Impact the Housing Market This Fall<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[15,10,18,27,52,25,66,49,252,63,20,12,48,13,28,54,47,19,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1115"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1115"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1115\/revisions"}],"predecessor-version":[{"id":1118,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1115\/revisions\/1118"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}