What happens when potential homebuyers come and there is no inventory in the market for sale?
This issue seems to be exactly what’s occurring in many parts of the United States and, as we enter the spring buying season, it poses a serious problem for anxious homebuyers.
From an article at the Keeping Current Matters blog these are the thoughts from some of real estates top economists…
(Note: Save The Date May 21, 2016 for a First Time Homebuyers Seminar That Will Be Held On Long Island! Email mhaltman@hallmarkabstractllc.com and request more details)
‘Lack of Inventory Challenging Many Housing Markets‘
Going into the 2016 spring market, the biggest challenge the real estate industry has is the lack of available housing inventory for sale. Here are a few experts and their thoughts on the subject:
David Crowe, Chief Economist for the National Association of Home Builders:
“Many sellers may not have an absolute decision as to whether to buy an existing home or a new home. So the low inventory of existing homes is locking them in place.”
Ralph McLaughlin, Chief Economist with Trulia:
“We are in a time of short supply, which is great news for sellers because they will likely be faced with multiple offers due to the little inventory out there…Buyers will be up against a lot of other people and against a short supply of existing homes.”
Lawrence Yun, Chief Economist with NAR:
“First-time buyers in high demand areas continue to encounter instances where their offer is trumped by cash buyers and investors. Without a much-needed boost in new and existing-homes for sale in their price range, their path to homeownership will remain an uphill climb.”
Fitch Ratings:
“One important issue that has restrained sales and starts is inventory. On an absolute basis, inventory has not expanded as much as in past recoveries, leading to less selection for buyers. This is especially true for existing home sales but is evident for new home construction as well. When it comes to U.S. housing inventory, more is better.”
Jonathan Smoke, Chief Economist for Realtor.com:
Google+“The increase in sales is resulting in continued tighter-than-tight supply—measured by NAR to be four months in January. For you non-economists out there, that metric measures the number of months it would take to sell the current inventory of available homes, at the current pace. Got it? Six to seven months’ worth of homes on the market is considered normal; four months is cray-cray.”
Michael Haltman is President of Hallmark Abstract Service in New York. He can be reached at mhaltman@hallmarkabstractllc.com.