Have you been wondering lately why existing home sales are so slow recently? Well, the answer's simple. It’s all due to low inventory.
The inventory of homes has been dropping each year for the past 29 months. In fact, it has dropped so much that it’s currently at less than what would normally be a four-month supply, and yet that’s for the entire year. Now, that’s considerably low, and it's also 10.4 percent lower than last year around this time.
Home Prices Go Up
So, what does that mean for homebuyers across the country? Well, for starters, the median home price is $247,000, which is up by 5.5 percent over last year. In addition, the home prices have been going up constantly every single year for 68 consecutive months. And, although the housing market nationwide did manage to gain a modicum of momentum during October 2017, overall home sales remain well below those of October 2016 due to the low home inventory factor.
Limited Choices & Faster Sales
Overall, this issue is fueling the rapid growth of home prices, as well as inhibiting buyers because of limited choices. When homes do sell, it is usually within 34 days, and a whopping 47 percent sold in less than one month. And, the number of distressed sales dropped from five percent to four percent over the past year.
In addition, buyers are finding that homes in the "affordable" range, are going under contract much faster than last year as well. These figures are according to the National Association of Realtors in their 11/21/2017 EHS report.
The Brunner Burkhart group prides itself on representing our buyers the best we can. Please feel free to contact us anytime with questions.