Low Housing Inventory Impact On Buyers And Sellers Explained

Dated: 01/16/2020

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Low Housing Inventory Impact On Buyers And Sellers Explained:

As mortgage rates remain at historic lows, the real estate market is expected to do very well this year. The most specific obstacle is due to the lack of homes for sale.  Last week, move.com, reported that 2020 is beginning with the lowest available housing inventory in two years. The report explains:

“Last month saw the largest year-over-year decline of housing inventory in almost three years with a dramatic 12 percent decline, pushing the number of homes for sale in the U.S. to the lowest level since January 2018.”


George Ratiu, Senior Economist at realtor.com, explains how this drop in available homes for sale comes at a time when more buyers are expected to enter the market:

“The market is struggling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a prime age for many to purchase their first home. The significant inventory drop…is a harbinger of the continuing imbalance expected to plague this year’s markets, as the number of homes for sale are poised to reach historically low levels.”


The question is: What does this mean to you?

If You’re a Buyer…

Be careful as you look for your house. It could take time to find a home that you love. Nonetheless, once you do, be ready to move on quickly. Already have a pre-approval for a mortgage from a reputable lender, be prepared to make a competitive offer from the outset (NO LOWBALL OFFERS), and realize that inventory shortages may lead to the return of bidding wars. Calculate about how far you are willing to go, if you really love a home and what sacrifices you are willing to make in order to secure a home.

If You’re a Seller…

The principal of Supply and Demand applies for sellers, and sellers have more of an influential position. Homeowners are in a great position to negotiate when receiving offers from buyers. Whether it is price, moving date, possible repairs, or anything else, you’ll be able to demand more from a potential purchaser at a time like this – especially if you have multiple interested buyers/offers. Don't be irrational, but you probably understand that you have the upper hand.

Bottom Line

The housing market will remain strong throughout 2020. Understand what that means to you, whether you’re buying, selling, or doing both.

Reach out to Team Caropreso today to discuss your Real Estate needs and how the current housing market impacts you!

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Vincent Caropreso

Being the CEO and Team Leader of Team Caropreso, Vince specializes in Listings, Marketing, REO/Foreclosures,Short Sales and working with Investors. With 19 years of experience and selling over 700 hom....

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