Some housing experts are concerned that the housing recovery seems to be stalling. Some are blaming the increase in mortgage interest rates since the first quarter of last year. Others are pointing at an economy that is improving but only at a snail’s pace. Still, others are questioning whether homeownership is even considered by some to still be part of the American Dream.
However, there is great evidence that the true reason home sales aren’t stronger is because we lack inventory in the vast majority of markets across the country.
Here are a few reasons why we believe this to be true:
Buyers Are Searching the Internet for Homes in Record Numbers
Trulia, a major online residential real estate site for home buyers that lists properties for sale, recently reported that it is experiencing record levels of traffic as the spring buying season kicks into high gear. The site reached a record number of unique visitors in April with nearly 50 million.
Buyers Are Physically Out Shopping
The number of potential home buyers physically looking at homes is increasing. The National Association of Realtors (NAR) measures this each month in a data point they call “foot traffic”. Foot traffic measures the number of homes being shown by agents. That number has increased for each of the last three months and has doubled over that period of time.
Inventory Levels are BELOW Historic Norms
History shows us that a balanced real estate market requires a six month supply of available housing inventory. We have not reached that mark in over two years. Though inventory numbers are improving, the recent increase in buyers now looking will again put a strain on this number.
While inventory levels remain below historic norms, the one place you can still find inventory is in new builds. Housing construction is still strong in many areas, and along the Wasatch Front, we see new home communities and custom homes being built. Also, many new home builders have an inventory of Move In Ready Spec homes that you will not have to wait to move into.
Check out the move in ready homes here on The HUB and also look at our Communities Page to see if there is one in an area that you would like to live in. Contact Us to help you find that perfect builder and the perfect home for you.
Thanks so KCM Blog for their contribution to this blog.