Reason #3 – Housing Inventory is Low, and the Number of Buyers is Growing
Generally speaking, the real estate market needs about 6 months of inventory in order to keep up with normal supply and demand. This means that at the current rate of sales, it would take 6 months for all of the homes for sale in the market to get sold.
In today’s market, there is significantly less inventory than that. In fact, nationally there is about 4.7 months worth of inventory available. This number doesn’t tell the whole story, however. In some metropolitan areas, there is less than a month of inventory. There are even some cities that only have a few days of inventory for sale!
At the same time, more people want to buy homes today than at any time in the past 5 or 6 years. Interest rates are at near record lows and a new generation of homeowners are trying to buy their first home.
The result is a simple supply and demand issue. There are fewer homes to sell and more people who
want to buy them. Make no mistake about it, today’s market is a seller’s market and people who sell their home today are in the strongest bargaining position in years.
“Make no mistake about it, today’s market is a seller’s market…”