Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.
However, there is one thing that may cause the industry to a halt: a lack of housing inventory. While buyer demand is the #1 reason to list your house today — looks like it will remain strong throughout the winter, supply is not keeping up.
Here are thoughts of a few industry experts:
National Association of Realtors: “Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year over year for 30 consecutive months. Unsold inventory is at a 3.4 month supply at the current sales pace, which is down from 4.0 months a year ago. ” Not good!
Realtor.com Economist, Joseph Kirchner: “The increases in single family permits and starts show that builders are planning and starting new construction projects, that’s a good thing because it will help to relieve the shortage of homes on the market.”
CoreLogic Chief Economist, Sam Khater: “Inventory is tighter than it appears. It’s much lower for entry-level buyers.”
Bottom Line: If you’re thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.