Going into the 2016 spring market, the biggest
challenge the real estate industry has is the lack of available housing
inventory for sale. Here are a few experts and their thoughts on the subject:
David Crowe,
Chief Economist for the National
Association of Home Builders:
“Many sellers may not have an absolute decision as to whether to
buy an existing home or a new home. So the low inventory of existing homes is
locking them in place.”
Ralph McLaughlin,
Chief Economist with Trulia:
“We are in a time of short supply, which is great news for
sellers because they will likely be faced with multiple offers due to the
little inventory out there…Buyers will be up against a lot of other people and
against a short supply of existing homes.”
Lawrence Yun,
Chief Economist with NAR:
“First-time buyers in high demand areas continue to encounter
instances where their offer is trumped by cash buyers and investors. Without a
much-needed boost in new and existing-homes for sale in their price range,
their path to homeownership will remain an uphill climb.”
Fitch Ratings:
“One important issue that has restrained sales and starts is
inventory. On an absolute basis, inventory has not expanded as much as in past
recoveries, leading to less selection for buyers. This is especially true for
existing home sales but is evident for new home construction as well. When it
comes to U.S. housing inventory, more is better."
Jonathan Smoke,
Chief Economist for Realtor.com:
“The increase in sales is resulting in continued
tighter-than-tight supply—measured by NAR to be four months in January.
For you non-economists out there, that metric measures the number of months it
would take to sell the current inventory of available homes, at the current
pace. Got it? Six to seven months’ worth of homes on the market is considered
normal; four months is cray-cray.”
Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
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