A Lack of Inventory Continues to Impact the Housing Market

The housing crisis is finally in the rear-view mirror as thereal estate market moves down the road to a complete recovery. Homevalues are up and distressed sales (foreclosures and shortsales) have fallen to their lowest point in years. The marketwill continue to strengthen in 2019.

However, there is one thing that may cause the industry to tapthe brakes: a lack of housing inventory! Buyer demand naturally increasesduring the summer months, but supply has not kept up.

Here are the thoughts of a few industry experts on thesubject:

Lawrence Yun, ChiefEconomist at National Association ofRealtors

“Further increases in inventory are highly desirableto keep home prices in check, the sustained steady gains in homesales can occur when home price appreciation grows at roughly thesame pace as wage growth.”

JessicaLautz, VicePresident of NAR

“There’s a supply-demand mismatch… Moreinventory is needed at the lower end and a price reduction may beneeded at the upper end.”

DanielleHale, ChiefEconomist of Realtor.com

“Heading into spring, U.S. prices are expected tocontinue to rise and inventory is expected to continue to increase,but at a slower pace than we’ve seen the last few months asfewer sellers want to contend with this year’s morechallenging conditions… A buyer’s experience will varynotably depending on the market and price point they’retargeting.”

Bottom Line

If you are thinking of selling, now may be the time! Demand foryour house will be strong at a time when there is very littlecompetition. That could lead to a quick sale for a really goodprice!