Some housing experts are concerned that the housing recovery
seems to be stalling. Some are blaming the one percent increase in mortgage
interest rates since the first quarter of last year. Others are pointing at an
economy that is improving but only at a snail’s pace. Still, others are
questioning whether homeownership is even considered by some to still be part
of the American Dream.
However, there is great evidence that the true reason home sales
aren’t stronger is because we lack inventory in the vast majority of markets
across the country.
Here are a few reasons why we believe this to be true:
Buyers Are Searching the Internet for Homes in Record
Numbers
Trulia, a major online
residential real estate site for home buyers that lists properties for sale,
recently reported that it is experiencing record levels of traffic as the
spring buying season kicks into high gear. The site reached a record number of
unique visitors in April with nearly 50 million.
Buyers Are Physically Out Shopping
The number of potential home buyers physically looking at homes
is increasing. The National Association of Realtors (NAR) measures this
each month in a data point they call “foot traffic”. Foot traffic measures the
number of homes being shown by agents. That number has increased for each of
the last three months and has doubled over that period of time.
Inventory Levels are BELOW Historic Norms
History shows us that a balanced real estate market requires a
six month supply of available housing inventory. We have not reached that mark
in over two years. Though inventory numbers are improving, the recent increase
in buyers now looking will again put a strain on this number.
Bottom Line
While inventory levels remain below historic norms, it will
remain a seller’s market. This being the case, if you are considering selling
your home, now may be the time to list it for sale.
Courtesy: Keeping Current Matters
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