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Housing Inventory Disappearing

Tuesday, May 3, 2016   /   by Dan Malloy

Housing Inventory Disappearing

The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) recently released their latest Existing Home Sales Reportwhich gives insight into today’s market conditions.


Inventory Levels & Demand


Sales of existing homes rose 5.1% month-over-month in March and are 1.5% higher than this time last year. Sales rose in all four major regions in March.


Total unsold housing inventory is 1.5% lower than March 2015 at a 4.5-month supply and remains well below the six months that is needed for a historically normal market.


Consumer confidence is at the highest level in over a decade. Pair that with interest rates still below 4%, programs available for down payments as low as 3%, and you have an attractive market for buyers.


Homes sold in March were on the market for an average of 47 days and 42% of properties sold in less than a month.


Prices Rising


March marked the 49th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $210,700 (up 5.7% from 2015).


So What Does This Mean?


The chart below shows the impact that inventory levels have on home prices.


Housing Inventory Disappearing | Simplifying The Market


 


NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:



"Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."



Bottom Line


If you are debating putting your home on the market in 2016, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Let's meet up so we can get the process started.

Malloy Home Team at Premier Brokers International
Dawn And Dan Malloy
9123 N. Military Trail, Suite 104
Palm Beach Gardens, FL 33410
561-876-8135
561-370-5736

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All listings featuring the RPBGFL MLS logo are provided by the Realtors of the Palm Beaches and Greater Fort Lauderdale, Inc. and BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright 2018 Realtors of the Palm Beaches and Greater Fort Lauderdale Inc. and BeachesMLS, Inc.