Low Available Home Inventory May be the New Normal

Low Available Home Inventory May be the New Normal
Posted By Jeffrey Hogue @ Dec 18th 2019 9:30am In: Real Estate

The internet has changed many things in our lives, often with unexpected outcomes. Many people now begin their search for a home on the internet. The speed of information the internet provides may be causing the cycle of historically low available home inventory that may be the new normal.
 

One of the biggest real estate stories of 2019 is the low home inventory. Supply and demand drive prices, terms, conditions, and many other facets of the housing industry. Through 2018 and 2019, the number of available residences for sale has consistently dropped, yet the number of sales continues to rise.

 

According to the latest data released Thursday by the National Association of Realtors (NAR), the median sales price for all existing homes stood at $271300, a 5.4 percent increase year-over-year, as prices climbed in every region of the united states. The increase marked the 93rd-straight month of year-over-year gains. All this while Inventory declined in November, dropping 7.3 percent month-over-month and 5.7 percent year-over-year. Unsold inventory stood at a 3.7-months supply at the end of November, the fifth-straight month of declines.

 

The Internets Influence on Available Home Inventory

When a home is newly listed, the information is made available to the public within 7 minutes. Thousands of websites across the globe share the glorious information that a new residence is now available for purchase. Back before the internet was prevalent, say 1995, it could easily take a week to get a fraction of the information to the general public, and most of that was purely local.

 
Here in Berks, that home listed for sale in 1995 would comfortably sit on the market for an average of 90+ days. In 2019, homes for sale in Berks County, up to $200,000, sat on the market an average of 39 days, a drop of almost 60%! There is little chance the flow of new home listings can keep up to backfill the inventory curve, especially when new construction is low.

 

Where an Experienced Agent Comes In

Information is one of the most valuable commodities on earth and can provide an advantage in every facet of life, especially business, economics, and, yes, housing. The tool many of us use to mine for information is the internet.

 

The internet can help you locate homes that are available with excellent efficiency. The tricky part of purchasing and selling a home is that no one solution fits all situations. When you add an experienced real estate agent to the equation, you now have the best of both worlds. Your agent can tailor a plan that suits your particular needs by devising a strategy that cannot be found with a Google search.

 

Here's wishing you and yours a blessed Holiday Season, and remember,
Knowledge (and Information) is Power!

Jeffrey C. Hogue ~ Your Experienced Agent!


Share on Social Media:

Comments (0)

Be the first to comment on this post!

Post a Comment

Email not published - will display gravatar if available