Whether you are looking to buy or sell a home, an important factor in today’s market is the number of homes currently for sale. Although inventory levels have continued to sit near historic lows, housing market experts believe inventory levels may have already hit their lowest points.
“It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.” Odeta Kushi, Deputy Chief Economist at First American Financial Corporation, said.
Nationally, the level of inventory has been rising since the beginning of the year. However, inventory in Houston has not been increasing as quickly. See the graphs below.
Nationally and locally, we are still not close to a balanced market and we will not be until we reach a 6 months’ supply of homes for sale. However, as a slow and steady increase in the homes for sale, you may be wondering what this means for you.
Buyers: It’s Go Time!
If you are a buyer, a rise in supply means you have more homes to choose from and less competition, which could mean minimal bidding wars. This great news should give you the motivation to continue moving forward with the buying process. “The influx of new sellers over the last couple of months has helped slow price gains and given buyers hope that they will be able to find a home that is a good fit,” Danielle Hale, Chief Economist at Realtor.com, said. Experts expect mortgage rates to increase, which will make purchasing a home less affordable over time. Now, you can still capitalize on today’s low interest rates. So, it is important you stick with your search as more homes get placed on the market.
Sellers: Supply Challenges Aren’t Over!
If you have been considering selling your house, you shouldn’t wait much longer! Inventory has risen significantly on the National scale and Houston is headed in that direction. 2021’s month-over-month gains in homes for sale have definitely helped buyers. However, we are still in a seller’s market! As shown in the graph below, although the number of homes for sale has been rising nationally, Houston is far from a completely stable market and we are still facing a historically low housing supply level.
We are expecting to see more homes on the market soon! Michele Harmon Team can get your home listed this Summer to help you get ahead of the competition. Listing now can potentially maximize your sales potential before more homes are available to purchase in your neighborhood.
More homes for sale means more options for buyers and more competition for sellers. If you are looking to buy or sell, contact Michele Harmon Team at 713-818-1330 today to discuss your real estate needs! We are a top team in the area and we will guide you through the process and make it as stress free on you as possible.
National Association of Realtors: https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales