It is not a secret that there is a shortage of homes on the market in the United States right now. However, if you are looking at the pool of lower-end homes, inventory is even smaller. According to the Wall Street Journal, the number of homes for sale below $100,000 dropped 8.6 percent in January as compared to a year earlier. This shortage is probably particularly difficult for first-time buyers. With so many entering the market, homes on the lower end of prices are snapped up more quickly.
However, if your budget is much bigger, there are plenty of homes for you to pick from. In fact, data from the National Association of Realtors showed that homes over $1 million increased 15 percent year-over-year.
“The lower the price, the smaller the growth in the number of homes on the market,” The Wall Street Journal reports. “Lower-priced homes [are] selling quickly even as inventory of expensive ones piles up.”
Analysts think stock prices contribute to the way different price points are moving. Higher-end buyers in the over $1 million market are probably more sensitive to stock price changes. That means many are probably delaying purchases recently. Real estate analysts note that this is why inventory is maintaining more highly in higher brackets.
“In certain price points, it’s really tough for buyers right now. There’s limited inventory and lots of demand,” says Alec Traub, a Los Angeles real estate professional.
Overall, the National Association of Realtors reports that the market nationwide has about a four-month supply of existing homes. A healthier more balanced market should have about a six-month supply, according to most economists.
Whether you are looking at lower-end homes, a grandiose luxury home, a rental home or even a commercial property, RE/MAX Paradise has you covered. Our agents can help you find your dream home in Miami today!