inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/content/2022/01/5beab16269fc5230d307a76ea7d0021622a88601.jpg
Exceeding the Standard.
  • Home
  • Search Listings
  • About Us
    • Our Agents
    • Community Service
    • Testimonials
  • Selling a Home
    • Why Stage Your Home?
    • What is my home worth?
  • Buying a Home
    • Mortgage Payment Calculator
  • Blog
  • Contact
inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/content/2020/11/rft10200015orig-2copy.jpg
978.935.9800
robinflynnteam@kw.com
Sign In
Sign Up
inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/content/2022/01/5beab16269fc5230d307a76ea7d0021622a88601.jpg
Exceeding the Standard.
  • Home
  • Search Listings
  • About Us
    • Our Agents
    • Community Service
    • Testimonials
  • Selling a Home
    • Why Stage Your Home?
    • What is my home worth?
  • Buying a Home
    • Mortgage Payment Calculator
  • Blog
  • Contact
inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/content/2022/01/5beab16269fc5230d307a76ea7d0021622a88601.jpg
Exceeding the Standard.
inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/content/2020/11/20200917-kcm-share.jpg
EconomyMarket Insight

How Low Inventory May Impact the Housing Market This Fall

inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/content/2020/11/rft10200015orig-2copy.jpg
Robin Flynn Team ,09/18/2020
Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of homes for sale.

Buyers are actively searching for and purchasing homes, looking to capitalize on today’s historically low interest rates, but there just aren’t

enough houses for sale to meet that growing need. Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery…These low rates have ignited robust purchase demand activity…However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”

 

According to the National Association of Realtors (NAR), right now, unsold inventory sits at a 3.1-month supply at the current sales pace. To have a balanced market where there are enough homes for sale to meet buyer demand, the market needs inventory for 6 months. Today, we’re nowhere near where that number needs to be. If the trend continues, it will get even harder to find homes to purchase this fall, and that may slow down potential buyers. Danielle Hale, Chief Economist at realtor.com, notes:

“The overall lack of sustained new listings growth could put a dent in fall home sales despite high interest from home shoppers, because new listings are key to home sales.”

 

The realtor.com Weekly Recovery Report keeps an eye on the number of listings coming into the market (houses available for sale) and the total number of listings staying in the market compared to the previous year (See graph below):How Low Inventory May Impact the Housing Market This Fall | MyKCM


Buyers are clearly scooping up homes faster than they’re being put up for sale. The number of total listings (the orange line) continues to decline even as new listings (the blue line) are coming to the market. Why? Javier Vivas, Director of Economic Research at realtor.com, notes:

“The post-pandemic period has brought a record number of homebuyers back into the market, but it’s also failed to bring a consistent number of sellers back. Homes are selling faster, and sales are still on an upward trend, but rapidly disappearing inventory also means more home shoppers are being priced out. If we don’t see material improvement to supply in the next few weeks, we could see the number of transactions begin to dwindle again even as the lineup of buyers continues to grow.”


Does this mean it’s a good time to sell?

Yes. If you’re thinking about selling your house, this fall is a great time to make it happen. There are plenty of buyers looking for homes to purchase because they want to take advantage of low interest rates. Realtors are also reporting an average of 3 offers per house and an increase in bidding wars, meaning the demand is there and the opportunity to sell for the most favorable terms is in your favor as a seller.


Bottom Line

If you’re considering selling your house, this is the perfect time to connect so we can talk about how you can benefit from the market trends in our local area.

Print Details
Previous post
Next post
Homebuyer Traffic Is on the Rise
Home Equity Gives Sellers Options in Today’s Market
inception-app-prod/OTE4YTgwNTEtZDUyZC00ZTYzLTgxZjUtZDAxOWI5ZmJmYjAx/logo/2016/11/RF_print logo_final-2.jpg

Office

Robin Flynn Team Keller Williams Merrimack Valley3 Lan Drive, Suite 300
Westford, MA 01866

phone: 978.257.0677 | fax: 978.935.9800

robinflynn@kw.com

Essentials

  • Home
  • Meet the Team
  • About Us
  • Buying a Home
  • Selling a Home
  • Listings Search
  • Blog
  • Contact

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.

© 2022 All rights reserved

Created with Placester

Sign in

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Sign Up
Your password has been successfully reset.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Succes! Your message was sent!
Thank you! We will be in touch shortly.
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!
You may now log in into your account
Go to the homepage
Verify your email address
In order to log in to your account, you need to confirm your email address. Please check your inbox!
Go to the homepage

Share this listing

Copy Link