5 Ways To Explain Low Inventory

5 Ways To Explain Low Inventory

Everywhere you turn, there's a new story about how the lack of homes on the market is driving up prices and driving buyers crazy. But what's the reason behind this trend?


There are a number of factors, according to a recent article at Real Estate Economy Watch. Make sure you understand the logic behind the market, so you can be the best advocate for your clients during these somewhat stressful times. 

Image title

  • Boom buyers are still holding out. About 16 million families bought homes in the peak of the boom around a decade ago, and many are still waiting around to make a profit, even if they aren't underwater. Even if CoreLogic's prediction that the national median price will reach the peak of 2007 in the next year or so does come to fruition, Real Estate Economy Watch says many of these peak buyers will have to wait another five years or more before they realize much profit on their homes.


  • The inventory shortage is squeezing move-ups. Owners who may be ready to move into a larger or more expensive home are often considered hidden drivers of the market. But right now, price instability and the lack of available homes is causing this group to hold off. But Real Estate Economy Watch says that stability is coming, despite the inflationary impact of market shortages, and predicts that this "vicious cycle" will ease.


  • Investors aren't ready to sell single-family homes they're renting. They're making money from both rising rents and home price appreciation. And that's why Real Estate Economy Watch cautions against assuming they'll "sell their mini gold mines to homeowners anytime soon." The upside? At least some young prospective owners have access to a relatively affordable alternative to apartments, where they can start families while they wait for entry-level homes to come on the market.


  • New-home construction is still very low. It may be tempting to blame this on the builders, but Real Estate Economy Watch points out that after the crash in 2007, thousands of smaller builders closed down, and many of those who survived did so by selling off their inventories of prime real estate earmarked for future construction. They predict that builders will make a dent in the higher-tier housing soon, but that they would help the inventory problem more if they concentrated on the lower-end demand.


  • Baby boomers are running behind. Everything from later retirement ages, longer careers, better health, and loss of household wealth/equity during the Great Recession have contributed to a slower-than-expected timeline for this generation. But Real Estate Economy Watch predicts that this will change as many must convert their equity into cash while they can still enjoy it, and says others won't be able to afford the costs to retrofit current homes in order to age in place.

 

Good agents who are well connected will have access to listings that are not listed in the MLS.  If you have been searching for a property and haven't been able to find it, give me a call today and let me know what you are looking for and if I have any properties that might be a good fit for you.  


www.sherrycabrera.com

214-454-6969


JP Piccinini Headshot
Author:
Phone: 480-980-9025
Dated: June 8th 2016
Views: 1,718
About JP: JP Piccinini is CEO and Founder of JP and Associates REALTORS (JPAR), Founder and CEO ofOdasi Real E...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

2 Ways To Get The Most Money From The Sale Of Your Home -  Real Estate with  
Teeing It Up Around Keller - Yes, I'm a woman who loves to golf
Improving Your Home With Insulation - When it comes to home ownership,
Feb 18 2018 55759 1 - How to choose the city you will

Our Bloggers

The Doyle Team * - 5
Comprar Casa DFW * - 4
Gabrielle Armstrong - 5
Cara Balderas - 73
Tami Bennett - 45
Ramon Bermudez - 4
Justin Blackburn - 1
Jessica Boozer - 18
Rhonda Borgne - 1
Olivia Borowski - 1
Jennifer Boyd - 2
Jamie Brannagan - 1
Annette Bruen - 47
Moira Brunken - 18
Beverly Bryant - 24
Ana Cantu - 1
Lisa Cardillo - 53
Bob Cardillo - 4
Lisa Carroll - 2
Lucina Cervantes - 11
Michael Chatman - 2
Gregory Cornett - 2
Angela Cotten - 97
Missie Craig - 12
Melisa Crooks - 1
Greg Cunningham - 2
David Darty - 1
Sarah Dieter - 9
Belinda Duff - 5
Eva Duffy - 8
Leah Ecob - 15
Kristine Edens - 3
Jill Elliott - 99
Laneal Ernest - 9
Nicole Espinosa - 27
Christopher Evans - 1
Heather Feragotti - 8
Mark Fischer - 2
Susan Florsch - 12
Jennifer Flynn - 9
Larry Frassinelli - 6
Chad Gabriel - 58
Shalee Garza - 10
Marcos Garza - 1
Tammy Gill - 1
Timothy Gilliam - 2
Christina Gonzalez - 5
Wilma Goodwin - 2
William Graves - 5
Roxann Hailey - 1
Jimmy Hanks - 1
Kristen Henderson - 2
Candie Hernandez - 10
Beth Herr - 1
Hunter Howard - 1
Bill Hurd - 3
Gary Hutchings - 20
Trenton Johnson - 15
Marla Johnson - 1
Felicia Johnson - 79
Dakota Joyner - 9
Sunil Kanjia - 8
Jemi Khan - 26
Leigh Klotz - 5
Amber L Johnson - 10
Michele Lafortune - 22
Maria Lopez-Jones - 1
Stacy Lynn Massar - 27
Chuck May - 1
Mikki Migis - 8
Richard Mikus - 1
Sean Moniri - 21
Naddia Morales - 10
Candace Mozingo - 1
Mark Mulch - 19
Steve Murray - 1
Julie Nicholson - 10
Nikki Okpuzor - 3
Alan Oliver - 7
Kaysone Orlando - 1
Holli Paddio - 3
JP Piccinini - 992
Julie Ann Pickering - 85
Ann-Marie Pope - 2
John Priestash - 57
Mimi Rader - 1
Shelia Randolph - 33
Teneka Ray - 1
Go 2 Girls Realty - 173
Kristi Roy - 1
Kelly Rumney - 9
Amy Jo Saenz - 3
Linda Scardis - 4
Sandy Setliff - 222
Christine Shannon - 30
Rene Sinclair - 27
Shelby Smith - 3
Rebecca Smith - 1
Bryce Smith - 5
(Allen) Mehrdad Solhjoo - 3
Monica Solkhon - 1
Malena Solorzano - 1
Rodrigo Sotomayor - 16
Drew Spears - 4
Jenna Stanley - 9
Tim Stoll - 52
Kelley Stubbs - 3
Melodie Sulgrove - 1
Judy Tapscott - 1
Seana Taylor - 217
Mary Taylor - 15
Kevin Taylor - 16
Julian Taylor - 17
Erica Taylor - 54
Angela Taylor - 1
Rosalia Tejeda - 1
Karla Terrell - 2
Michele Thompson - 6
Jason Todd - 24
Andrea Trimble - 55
Sarah Uber - 5
Diane Velez - 18
Debbie Viverito - 132
Rachel Walsh - 2
Nick Walton - 79
Spring Weeks - 9
Clint White - 2
Christopher Winkler - 2
Martina Worley - 2
Keisha York - 30
Audra Young - 1
Debbie Zurita - 17

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

JP And Associates REALTORS
6136 Frisco Sq Blvd, #200
Frisco, TX
972-375-9448


Other Locations