Why Is Housing Inventory So Low & When Will It Increase?

Why Is Housing Inventory So Low & When Will It Increase?

Many buyers and sellers are asking, “When will housing inventory increase?” The limited supply of homes for sale has made finding the right property challenging, driving up prices and frustrating potential homeowners. To understand when conditions might improve, we’ll explore the root causes of low housing inventory, current trends that may signal relief, and how these factors specifically affect the Florida housing market.

If you’re considering Davenport, this guide on the pros and cons of living in the area can help you make an informed decision.

What Is Causing the Housing Inventory Shortage?

The housing inventory shortage in the U.S. isn’t just a recent phenomenon—it’s the result…

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U.S. Housing Inventory Hits A New Low… List Your House TODAY!

How Much is your Davenport FL home worth?  

Every summer, families across the country decide if this will be the year they sell their current house and move into their dream home.

Mortgage rates have hovered around 4% for all of 2017, forcing buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Trulia reported that “U.S. home inventory has tumbled 8.9% over the past year and has now fallen for nine consecutive quarters.” There is now 20% less inventory than there was five years ago.

Here is a chart showing the decrease in inventory levels by category:

Bottom Line

Demand for your…

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Sales Could be the Cure for Inventory Shortage

To put the U.S. housing inventory shortage into perspective, consider that existing housing inventory has declined, year over year, every month for the past two years.

In short, it’s harder and harder to find homes for sale, and when buyers do find them, competition is fierce. So what’s the answer?

The National Association of Realtors wonders if it might be the growing number of homeowners who think now is a good time to sell. More selling, in other words, could eventually lead to more listings.

That’s according to NAR’s quarterly Housing Opportunities and Market Experience (HOME) survey, which found that 71 percent of U.S. homeowners think it’s a good time to sell. That’s up from 69 percent a quarter ago and up from 61 percent a year ago. Seller…

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Tight Housing Inventory Drives Apartment Demand Sky-high

As housing inventory continues to tighten, would-be homeowners are being driven toward renting—and the apartment market is struggling to keep up. According to a new study commissioned by the National Multifamily Housing Council and the National Apartment Association, the U.S. will need 4.6 million new apartments by 2030 in order to keep up with demand—or 325,000 every year.

According to the study, about 1 million new renter households were formed every year over the last five years. This steep jump is caused, in large part, by consumers delaying housing purchases.

“Life events such as marriage and children are the biggest drivers of home ownership,” Rental Housing Journal reported. “In 1960, 44 percent of all households in the U.S. were…

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Falling Housing Inventory Stock is Troubling

National Association of Realtors, a trend that continued into April.

"The inventory is reaching historic lows. It's never declined faster than it did last month. It's freaking us out—it's affecting our business; it's limiting our sales," said Redfin CEO Glenn Kelman, on CNBC. "We're going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch."

Data from Redfin shows that homes in April sold the fastest since 2010, and sold 10 days faster than a year previously. Many homes, one in four, sold above their list price. Kelman puts the blame partially on an unwillingness to sell, as many homeowners choose to rent out their home to keep their mortgage instead.

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