Homebuyers are flooding the housing market right now to take
advantage of record-low mortgage rates. Many have a sense of urgency to find a
home soon since experts forecast a steady rise in both rates and home prices
this year and next. As a result, buyer demand greatly outweighs the current
housing supply. Here’s how the shortage of houses for sale sets yours up to be
the oasis in an inventory desert.
According to the National Association of Realtors (NAR), today’s housing inventory sits at an incredibly low 2.1-month supply, far below the 6-month mark for a neutral market. Inventory of single-family homes a year ago was already very low, and as you can see in the graph below, this year’s levels are even lower:
Due to these market conditions, today’s buyers frequently
enter fierce bidding wars while trying to purchase a home. This in turn drives
up home prices and gives sellers incredible leverage in the negotiation
process, two big wins if you’re going to sell your house this year.
Bottom Line
In such a hot market, it can feel as though the supply of
homes has virtually dried up, leaving buyers to wander in an inventory desert.
That’s why there’s never been a better time to sell. To a parched buyer needing
to secure a home as soon as possible, your house could be a true oasis.
Source: Real Estate with Keeping Current Matters
