The chief economist with the National Association of Realtors, Lawrence Yun, has provided great data and amazing insight concerning the Real Estate market nationwide. In his most recent video, he speaks to the appreciation rate and quick increase in prices across the nation.
For the price increases to calm, there must be more inventory brought to the market, “… doubling of inventory could lead to a rise of homes sales 20%-30%…”.
This would bode well for a Buyer in the market. Have more choices, alleviate some of the nervousness of being priced out of a market due to lack of supply, this Buyer may be afforded the opportunity to find a home that is closer to their ideal set up.
When could we see more inventory?
A gain of 8.1% from a year ago to 1.415 million new unit production (annualized) is good but far more units are needed. Housing permits, a precursor to starts, were better at 1.55 million. There has been an increase in cost of goods in the new construction supply chain, thus elevating prices and in some cases slowing progress of completion. The resale market will add supply once control has been gained over the current health crisis affected the world. The answer to the question about inventory, not in the short term.
We have winter, holidays, virus(s), election results and a new year ahead, many folks are standing pat until a few of these items become certain, creating a comfort level that allows society to come out of hibernation and start to move outside. It is my hope, as I am sure it is yours, to make it through these next few months healthy, happy and at or below the same weight I am currently… we all have our dreams.
