![]() ![]() The real estate market remains in balance if the number of sellers matches the number of buyers. Additionally, people have left urban centers due to social distancing requirements and remote working, so city life has become less of a draw for buyers. As people continue losing jobs, more foreclosures are expected by the end of 2022. Of course, a lot of it also has to do with COVID-19 and its effect on life overall at the height of the pandemic. So sellers have decided to hold on to their houses for a bit longer, which ultimately led to the low inventory real estate crisis.Īnother reason behind low housing inventory is the increased motivation of buyers, as record low mortgage rates pushed more buyers to purchase the property. Sellers were getting the highest prices and are able to sell quickly, but they were afraid that they might not find another affordable home. It was not really influenced by whether homeowners could sell their homes and more influenced by what happened once the house sold. The primary reason there was low housing inventory in 2022 was because of seller uncertainty. To understand why housing inventory is so low, we have to look at how the 2022 market behaved. ![]() Why is the Housing Inventory so Low in 2023? As a buyer, you will have to stay prepared and be ready to move quickly once you find a home that meets your criteria since there’s a high probability that someone else is interested in the home as well. Low inventory will inevitably translate into more competition for available properties. ![]() Normally, there’s approximately a six-month supply of inventory homes for sale at any time. That means that if no new homes become available, there won’t be any homes available to buy after a month. If we look at 2022 data so far, there is about a one-month supply of inventory homes on the market right now. Statistics show a nearly 13% increase in home prices in 2021. The combination of low inventory real estate and high demand lead to the increase in house prices. What made the situation worse was the higher number of buyers in the market. How Low is the Inventory Level is Right Now?Ģ021 was the lowest housing inventory year on record housing inventory declined almost 40%. But if there are more homes available in inventory, buyers are more likely to want to make a move. In a low inventory real estate market, buyers may become discouraged when they find limited options, most of which don’t even meet their needs or are unavailable in their preferred neighborhoods. Housing inventory is calculated by simply counting the properties currently listed on the real estate market as of the last day of the month. This listing would not include houses that are already on a contingency or are temporarily not available for showing. A buyer can visit a property or attend an open house event and provide a list of the inventory homes for sale. Whenever a seller lists a property for sale, it is counted towards the area’s total housing inventory. An inventory home, otherwise known as a home for sale or active listing, is simply the number of properties available in the market for sale. ![]()
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