The biggest challenge in today’s real estate market is a lack of housing inventory. How big of a challenge is the housing shortage? Here are what four industry economists are saying on the issue (emphases added):
“The underlying fundamental issue is an overwhelming lack of supply… The supply of newly constructed homes is also sagging, adding to the supply challenges. Over the last eight years, housing demand has increased by 5.9 million, but the net new number of housing units has only increased by 3.5 million.”
“Everyone has been talking about tight inventory but I think we are OK calling it a straight up inventory crisis at this point. We just don’t have enough homes.”
“House prices today are higher than they were at the peak in the summer of 2006, near-record-low mortgage rates have boosted housing demand, and sales volume is robust. The spoiler is the lean inventory of houses for sale.”
“Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”
In the Cincinnati housing market, available inventory is starting to climb at higher price ranges, as it typically does in the fall months. However, the lack of available inventory in lower price ranges is almost as severe as it was 6 months ago at the beginning of our spring market.
My recent listing this week at 619 Ibold Road in Miami Township, priced at $135,000, had an unprecedented 47 scheduled showings the first 36 hours on the market, and 6 offers within 24 hours. As a 30-year veteran of the real estate industry, this certainly was a record breaker!
If you are considering selling your house soon, now may be the time to get it on the market, particularly if your home value is less than the average price in our market. The lack of competition of other available inventory and the continued large buyer volume could lead you to a faster sale at a higher price now, instead of in the spring.
Of course all real estate is local! Please call or email me so I can provide you specific market data for your property.