Where is the inventory of homes for sale?
Most of the first time buyers today remember the housing crisis as something they heard mom and dad talking about…or they don’t remember it at all so it doesn’t matter. Ten or so years later and we see challenges in the real estate market – but why?
A buyer must have a seller and if there are far more buyers than sellers, prices go up. In real estate, you can see differences in demand and market times on housing price alone. First time buyers are seeing houses go under contract like a game show. Higher-end luxury real estate sales are seeing a slow down or rely very specifically on location to keep traction.
Does it cause a bubble? What will happen to home values? Here’s what some of the “experts” are saying:
“The typical U.S. home list price has set a new high right on the cusp of the spring homebuying season, and despite a slowing growth rate, home prices will likely continue to set new records later this year,” Realtor.com Chief Economist Danielle Hale said.
“It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”
“More inventory is needed at the lower end and a price reduction may be needed at the upper end,” she said, adding that NAR projects sales to accelerate later this year.
Bottom Line: Sellers are getting top dollar and over asking price in many markets. If you’re thinking about selling a home, now might be a great time. If you’re a buyer and you’re into buying low, there isn’t a third boat. No matter what your real estate needs are, create a partnership in all matters #home. The industry needs it, you deserve it. A True Professional. The Mortgage Professional.