Recently the National Association of Realtors wrote an article concerning this exact subject. Click on their logo to read this article!
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."
J
onathan Smoke, Chief Economist for Realtor.com: “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.”
Do you know what happens in a tight real estate market? Yes, there are bidding wars and housing costs skyrocket! Here is another article written by The National Association on how you should work through a tight housing market.
Here is some suggestions on how to handle a tight real estate market.
The shortage of homes in the $250,000 to $400,000 market in Essex County has been experiencing low inventories! This is a difficult Spring for first-time home buyers and those folks who are looking for a home in this price range!! We can help you. Step number one we sit together and build a strategy for you to purchase a home in this competitive market. The Militello Team has over 30 years of experience. We have seen competitive markets before, Real Estate is cyclical. When you work with an experienced agent your chances increase for success. Call us today. Joseph Militello (978) 815-3877 and/or Kathleen Militello (978) 500-1480.
