Here’s a quick update on the current housing supply situation.
It appears that housing supply may be on the rise, so what does that mean for you?
Of course, an important factor in today’s housing market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications that we may have hit the lowest point we’ll see and that we’re possibly working our way back up.
In May, inventory was at 2.5 months of supply, which was up from 2.4 in April. That’s a trend we’re seeing on both the national and local levels; the months’ supply has increased every month since the beginning of the year. Though we’re still nowhere near a balanced market (around six months of supply), we are seeing a slow but steady increase in homes for sale.
That has left many buyers and sellers wondering about how this will affect their prospects. If you’re a buyer, this means that more options are arriving, so now may be the best time to act. As the number of homes for sale goes up, the less competition there will be and the less intense the bidding wars will become. If you’ve been struggling to find a home, this news should bring you some hope and motivation to keep looking. Experts have been projecting that mortgage rates may begin to increase toward the end of the year, which will only make purchasing a home a bit less affordable as time passes.
If you’re a seller in today’s market, now is still a good time to sell. If you’ve been putting it off, don’t wait much longer. This year’s month-over-month gains in the number of homes for sale have helped buyers, but we’re still very much in a seller’s market. More homes are expected to hit the market in the coming months, so selling this summer gives you a chance to get ahead of the competition and maximize your sales potential.
The bottom line is that more homes for sale mean that buyers have more options and sellers have more competition.
If you’re looking to buy or sell or if you have any questions about the local market, reach out to us. Let’s connect today so that we can discuss your options.