Where Have All the Houses Disappeared To?

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Daniel Villacis - Broker

Modern Day Real Estate
Office: (203) 408-3001
Cell: (203) 667-4475

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Gabriela Villacis

Modern Day Real Estate
Office: (203) 964-3000
Cell: (203) 962-4006

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Edison Andrade - Real Estate Agent

Modern Day Real Estate
Cell: (203) 609-1229

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Irvin Andrade - Buyers Consultant

Modern Day Real Estate
Cell:(203) 428-1911

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Dimitrios Dimitroglou

Modern Day Real Estate
Cell: (203) 856-1834

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Edward Vilorio

Modern Day Real Estate
Cell: (203) 243-0735

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Modern Day Real Estate

482 Summer Street, Suite #5
Stamford, CT 06901
Call Us at (203) 408-3001

If you’re following what’s happening in the current housing market, you’ve seen how the lack of newly constructed homes is a major reason there’s a shortage of housing inventory available to today’s buyers. Another reason is that the inventory of existing homes for sale is shrinking. According to the most recent Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 10.8% from the same time last year. That exceeds expectations and is great news.

The troubling news from the report is that the sold inventory is not being replaced. As NAR explained,

“Total housing inventory at the end of December totaled 1.40 million units, down 14.6% from November and 8.5% from one year ago. Unsold inventory sits at a 3.0-month supply at the current sales pace, down from the 3.7-month figure recorded in both November and December 2018. Unsold inventory totals have dropped for seven consecutive months from year-ago levels, taking a toll on home sales.”

The situation was also addressed in a recent Zillow article stating,

“The number of for-sale homes in the U.S. is at its lowest point in at least seven years, and the shortage appears poised to get worse before it gets better.”

Bill McBride of Calculated Risk further noted,

“Inventory always decreases sharply in December as people take their homes off the market for the holidays. However, based on the data I’ve collected, this was the lowest level for inventory in at least three decades (the previous low was 1.43 million in December 1993).”

Why is inventory falling so dramatically? I thought the housing market had softened.

A year ago, that was the case – but the market shifted again. Skylar Olsen, Director of Economic Research at Zillow, explains,

“A year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back to accelerating growth right as we head into home shopping season with demand outpacing supply.”

What does this mean if you’re a homeowner thinking of selling?

Now is a great time to consider putting your home on the market. The competition (number of houses on the market) has not been this low in decades. It’s best not to wait for the inventory (both existing homes and new construction) to increase in the spring, as it always does.

Bottom Line

The supply of homes for sale is at a historic low. Buyer demand is surprisingly strong. Now would be a great time to sell.

Talk to a Real Estate Expert today.

Daniel Villacis - Broker

Modern Day Real Estate
Office: (203) 408-3001
Cell: (203) 667-4475

Contact Daniel
daniel-villacis-update
Gabriela Villacis

Modern Day Real Estate
Office: (203) 964-3000
Cell: (203) 962-4006

Contact Gabriela
Gabriela-Villacis
Edison Andrade - Real Estate Agent

Modern Day Real Estate
Cell: (203) 609-1229

Contact Edison
Edison-Andrade-Update
Irvin Andrade - Buyers Consultant

Modern Day Real Estate
Cell:(203) 428-1911

Contact Irving
Irving Andrade
Dimitrios Dimitroglou

Modern Day Real Estate
Cell: (203) 856-1834

Contact Dimitrios
mre-photo
Edward Vilorio

Modern Day Real Estate
Cell: (203) 243-0735

Contact Edward
mre-photo

Modern Day Real Estate

482 Summer Street, Suite #5
Stamford, CT 06901
Call Us at (203) 408-3001

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