It has become pretty common knowledge that the economy and real estate market are doing well. More people with jobs has meant more homebuyers, and they have caused median home prices to rise. This is also happening because supply of homes is decreasing. However, if it’s clearly a popular time for buyers, why aren’t more owners incentivized to sell? There are a few reasons for low listing inventory lately.
January inventory was actually up 3 percent from December, according to the National Association of Realtors. However, it was still down in the year-to-year comparison.
“The spring buying season is right around the corner and current supply levels aren’t even close to what’s needed to accommodate the subsequent growth in housing demand,” says Lawrence Yun, NAR’s chief economist. “Home prices ascending near or above double-digit appreciation aren’t healthy – especially considering the fact that household income and wages are barely rising.”
Here are reasons for low listing inventory according to The Fiscal Times:
- Low building
High cost and low availability of space is making housing starts too difficult on builders.
“The disappointing construction numbers reflect the loss of small builders and a shortage of construction labor,” says Yun. “Small construction companies have traditionally been the backbone of new-home building, but the difficult financing environment created by local banks since the downturn has thinned their ranks.”
2. Less distressed sales
While of course this is not a completely bad thing, less distressed sales mean less homes put on the market.
3. People don’t want to move.
The Fiscal Times gave several reasons why people are not moving. One is that baby boomers have done renovations on their homes instead of moving. Also more people employed means less moving searching for jobs. Also, now that inventory is tight, people don’t want to sell and not have a good pick of a new home.
Thinking about selling your Miami home and now realizing how valuable that would be? Contact us today and we can help you list and then find a new perfect home.