Housing Supply Is Rising. What Does That Mean for You ?
An important factor in today’s market is the number of homes for sale. As the inventory levels are continuously on historic lows, there are indications that we will experience a new lowest very soon.
Although inventory has hit the bottom but still the unsold inventory in May was at 2.5 months supply from 2.4. The statement is concluded by Odeta Kushi, a Deputy Chief Economist at First American, about our supply challenges.
Through the perspective of the graph given below we can evaluate that the inventory level has been rising since the beginning of the year. Being aware that we are not in the vicinity of a balanced market, which is being in a 6 months’ supply of homes for sale. Although the increase in homes for sale is slow, the surge has been pretty constant. And this increase has further left many buyers and sellers wondering the same thing.
Buyers:
It’s your time to act as you will be granted with multiple options.
Being a buyer, increasing inventory is always welcomed. Increased supply would often result in increased options while leaving space for less competition and fewer bidding wars.
If we go by the latest Monthly Housing Market Trends Report, we can observe a significant and constant increase in the supply levels unlike typical summer market:
“We can say in June, the percentage of newly listed homes grew by 5.5% on a year-over-year basis, and while on a month-over-month basis it grew by 10.9%. As compared to May, June month has shown only fewer newly listed homes in the latest market.A welcome for tight housing market in this year, is the continuing growth in new listings”
In case you are facing problems purchasing a new home, this news can work as a ray of hope and inspiration to continue with the buying process. As soon as the mortgage rate begins increasing, purchasing a new home would become easier and more affordable. Also we are still capable of capitalizing on today’s low interest rates, so try to stick with your search as guaranteed homes are coming into the market.
Sellers:
While the supply challenge would still continue, hence now is the correct time to sell.
If you want to put off the idea of selling your house then you should not wait much. In the year 2021, the month over month increment in the home sales have helped many buyers but still the seller’s are sailing in stronger boats.
In accordance with the given graph, although the number of homes for sale is rising, the supply level continues to be low as before. And yes in the coming months, more homes are expected to come. The best time to sell your house is now, selling your house this summer would let you maximize your sales potential before other homes from your neighborhood come into the market.
Bottom Line:
The number of homes and the options run parallel to each other, hence more the number of homes more will be the option for the buyers and sellers. Now further let’s move towards why selling and buying homes is a good idea nowadays ?
