You don’t have to be a financial genius to figure out the graph above. We’ve been talking about inventory for years and lots of folks have decided to wait for the market to turn around. Many folks may have lost the opportunity of a lifetime, others will simply pay more for less. The biggest hurdle most folks have to get over is the concept of perfection. You need to focus on the difference between what can be fixed and what can’t. Buying a house with a great kitchen and subpar location will haunt you for the rest of your life. Search for the neighborhood you want to live in, find the house that has the basic requirements and get started by making an aggressive offer. Appraisers have been doing a great job of keeping the market honest. Holding out for the best deal means you may just miss out completely. Make the strongest and best offer you can and let the appraiser determine the value. The best deal in this market is the deal you close at market value. Important note: buy a home that is financially comfortable. If there are two of you get approved based on one income. Life happens and you need to be prepared to weather the storm. The good news is the prices will continue to rise for the near future and you can benefit by getting in the game! Real estate is still the best long-term investment. The perfect home is the memories you create with your family in the home you perfect over a lifetime.
More on Inventory and Supply & Demand. When inventory in the housing market is low, it can have major effects on the supply and demand of homes. This can lead to an increase in prices as buyers compete for limited housing options. If there are many more buyers than sellers, home values tend to rise quickly due to a lack of available real estate.
On the other hand, when there’s a large inventory of homes, buyers have more options to choose from and prices tend to stay more reasonable. Low housing inventory can also slow down the rate of new listings, as sellers are reluctant to put their house on the market if they won’t get a good return on investment.
In addition, low inventory often indicates an area with high demand, adding to its attractiveness for potential buyers. For these reasons, low housing inventory is often seen as a sign of a healthy real estate market. However, the effects of this can be both positive and negative depending on the circumstances.
It’s important to understand how supply and demand work in order to make informed decisions when it comes to buying or selling a home. By taking inventory levels into account, buyers and sellers can make more educated decisions about the housing market. Understanding how low inventory affects the housing market is key to making wise investments. It pays to be aware of current market conditions and adjust plans accordingly.
The bottom line is that low inventory can have both positive and negative effects on the housing market, so it’s important to be aware of the current market and how supply and demand could affect prices.
By taking inventory levels into account, buyers and sellers can make more informed decisions when it comes to buying or selling a home. With this knowledge, you’ll be better equipped to capitalize on opportunities in the housing market.
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