Housing Supply Is Rising What Does That Mean For You

Dated: July 14 2021

Views: 787

Housing Supply Is Rising. What Does That Mean for You?

Housing Supply Is Rising. What Does That Mean for You? | MyKCM

An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications we may have hit the lowest point we’ll see. Odeta Kushi, Deputy Chief Economist at First American, recently said of our supply challenges:

It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.

To put it into perspective, the graph below shows levels of inventory rising since the beginning of the year:Housing Supply Is Rising. What Does That Mean for You? | MyKCMWe’re still not close to a balanced market, which would be a 6 months’ supply of homes for sale. However, we are seeing a slow but steady increase in homes coming up for sale. And that leaves many buyers and sellers wondering the same thing: what does that mean for me?

Buyers: More Options Are Arriving, so It’s Time To Act

If you’re a buyer, more inventory coming to market is a welcome sight. More supply means more options and less competition, which could mean fewer bidding wars.

According to the latest Monthly Housing Market Trends Report, supply levels are continuing to increase, which is different from the typical summer market:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.

If you’re having trouble finding your next home, this news should give you the hope and motivation to keep your buying process moving forward. Experts project mortgage rates will begin increasing, which will make purchasing a home less affordable as time passes. You can still capitalize on today’s low interest rates, so stick with your search as more homes come to market.

Sellers: Our Supply Challenges Aren’t Over Yet, so Now Is the Time To Sell

If you’ve been putting off selling your house, you shouldn’t wait much longer. The year’s month-over-month gains in homes for sale have helped buyers, but we’re still very much in a sellers’ market.

As the graph below shows, even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically:Housing Supply Is Rising. What Does That Mean for You? | MyKCMOf course, more homes are coming to market now, and more are expected in the coming months. Selling your house this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.

Bottom Line

More homes for sale means more options for buyers and more competition for sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s still a good time to make your move.


FREE Search | ALL Area Listings | ANY Time

MoveRealtyOnline.com  [Enter YOUR preferences as to location, size, price range, etc.]       

Are You Thinking About Selling Your House Soon?  Download FREE Guide: http://bit.ly/FREESummerSELLERSGUIDE

See an Instant Market Report on YOUR Home, Including Comparables  http://bit.ly/YOURHomeMarketValueReport

Latest Blog Posts

Tips For Todays Real Estate Market

Thanks to Laurie Flood, a Northwest Austin Realtor, for sharing some of this information.Some homeowners have received texts and calls from individuals offering to purchase their homes. Is

Read More

3 Hot Topics In The Housing Market Right Now

3 Hot Topics in the Housing Market Right NowIf you’re a prospective buyer or seller, it’s important to understand the current real estate market conditions and how they affect you. The 

Read More

Housing Supply Is Rising What Does That Mean For You

Housing Supply Is Rising. What Does That Mean for You?An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are

Read More

4 Major Incentives To Sell This Summer

4 Major Incentives To Sell This SummerWhile the housing market forecast for the second half of the year remains positive, there may not be a better time to sell than right now. Here are

Read More