The housing crisis is finally in
the rear-view mirror as the real estate market moves down the road to a
complete recovery. Home values are up, home sales are up, and distressed sales
(foreclosures and short sales) have fallen to their lowest points in years. It
seems that the market will continue to strengthen in 2018.
However, there is one thing that
may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it
will remain strong throughout the year, supply is not keeping up.
Here
are the thoughts of a few industry experts on the subject:
Lawrence
Yun, Chief Economist at National Association
of Realtors
“A
majority of the country saw an upswing
in buyer interest at the end of last year, which ultimately ended up putting even more strain in inventory levels and
prices…These consistent, multi-year price gains have
certainly been great news for homeowners, and especially for those who were at one time in a negative equity
situation.”
Dr.
Frank Nothaft, Chief
Economist for
CoreLogic
“The
number of homes for sale has remained very low. Job growth lowered the
unemployment rate to 4.1 percent by
year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of
prospective home buyers. The net result of rising demand and limited
for-sale inventory is a continued appreciation in home prices.”
Bill
Banfield, Quicken Loans Executive VP of Capital
Markets
“Low
inventory of homes available for sale and a growing economy has led to steadily
rising home values as indicated by the string annual
increase of the HVI (Home Value Index). The recent increase in interest rates
could test affordability in the short run, but the desire to own a home remains
on firm ground and may ultimately help normalize the inventory issues.”
Bottom Line
If you are thinking of selling, now
may be the time. Demand for your house will be strong at a time when there is
very little competition. That could lead to a quick sale for a really good
price.