3 Expert Insights On Inventory In The Current Market
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The
current housing landscape presents greater home values, low interest
rates, and high buyer demand. All of these factors point to the strong market forecasted to continue throughout the rest of the year.
There is, however, one thing that may cause the industry to tap the brakes: an overall lack of housing inventory. Buyer demand naturally increases during the summer months, but the current supply is not keeping up.
Here is a look at what a few industry experts have to say:
“Market conditions are ripe for increasing home sales
with one glaring exception. The supply of homes for sale remains tight,
keeping existing home sales below potential.”
“We’re not seeing as many new listings come up on the
market…It was only 18 months ago that the number of homes for sale hit
its lowest level in recorded history and sparked the fiercest
competition among buyers we’ve ever seen.”
Bottom Line
If you’re thinking of selling, now may be the time. Demand for your
house will be strong during a period when there is very little
competition, ideally leading to a quick sale and a great return on your
investment.
Owning a home has great financial benefits. In a recent research paper, Homeownership and the American Dream , Laurie S. Goodman and Christopher Mayer of the Urban Land Institute explained: “Homeownership appears to help borrowers accumulate housing and nonhousing wealth in a variety of ways, with tax advantages, greater financial flexibility due to secured borrowing, built-in ‘default’ savings with mortgage amortization and nominally fixed payments, and the potential to lower home maintenance costs through sweat equity.” Let’s breakdown 5 major financial benefits of homeownership: 1. Housing is typically the one leveraged investment available Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. A 20% down payment results in a leverage factor of five, meaning every percentage point rise in the value of your home is a 5% return on your equity. If you put down 10%, your leverage factor is 10. Example: Let’s as...
The
current housing landscape presents greater home values, low interest
rates, and high buyer demand. All of these factors point to the strong market forecasted to continue throughout the rest of the year.
There is, however, one thing that may cause the industry to tap the brakes: an overall lack of housing inventory. Buyer demand naturally increases during the summer months, but the current supply is not keeping up.
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