Tag Archives: Inventory

From inventory, to price appreciation, to the new tax reform bill—the future of the housing market remains uncertain. However, as 2017 winds down, the industry can’t help but predict what’s to come for 2018.

Even though low affordability and inventory levels have become worth watching in recent times, homeowners can thank a healthy economy and the level of demand for improving their odds of finding prospective buyers.

June’s existing-home sales report was recently released. Does it show a change in the current market’s trend, and what could the results mean for potential first-time homebuyers?

Homeowners think it’s a great time to both buy and sell, however in the current housing shortage, when it comes to buying, renters tend to dissagree. If homeowners are so positive that it's a good time to sell, what's stopping them from putting their houses on the market?

There are few more concrete examples of supply-and-demand economics in action than the housing market. A new report looking at April numbers shows a spike in demand and a corresponding spike in median prices. The B-side, of course, is that while demand rises, inventory shrinks, fueling the current sellers’ market.

While April continues a 19-month trend of decline in the number of houses on the national market, down 13.3 percent, market demand continues to surge, causing rising prices and decreased median time from listing to going under contract. Many houses across the country are selling above their asking price. This trend could continue through May and June as more houses appear on the market.

Housing demand is starting to cool off, due largely to low inventory and rising prices. The Oakland, California, market was hit particularly hard in terms of demand for March. Demand hit a record high in January.

Home sales should remain strong as the year goes on, even despite rising mortgage rates, tight inventory, and declining affordability. Potential existing-home sales rose 0.6 percent over the year and 83 percent over their all-time high. Wage growth, strong employment, and an uptick in building permits will encourage sales further.

Low inventory continues to hinder the housing market. Many potential sellers simply aren’t selling out of fear of not being able to afford a new home. Moving may mean losing their low mortgage rates, which were locked in after the crisis.

Zillow will release its Real Estate Markets Report for March 2017. The report covers several data points, including demand, home prices, inventory, and sales numbers. One thing to keep an eye out for in March is inventory levels. The previous report, from February 2017, showed declining inventory overall, a problem further developed by high demand.