Where Have All the Houses Disappeared To?
If you're following what's happening in the current housing market, you've seen how the lack of newly constructed homes is a major reason there's a shortage of housing inventory available to today's buyers. Another reason is that the inventory of existing homes for sale is shrinking. According to the most recent Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 10.8% from the same time last year. That exceeds expectations and is great news.
The troubling news from the report is that the sold inventory is not being replaced. As NAR explained,
The situation was also addressed in a recent Zillow article stating,
Bill McBride of Calculated Risk further noted,
Why is inventory falling so dramatically? I thought the housing market had softened.
A year ago, that was the case – but the market shifted again. Skylar Olsen, Director of Economic Research at Zillow, explains,
What does this mean if you're a homeowner thinking of selling?
Now is a great time to consider putting your home on the market. The competition (number of houses on the market) has not been this low in decades. It's best not to wait for the inventory (both existing homes and new construction) to increase in the spring, as it always does.
The supply of homes for sale is at a historic low. Buyer demand is surprisingly strong. Now would be a great time to sell.