Housing Shortage? There is an End in Sight!

It’s no secret that this housing market is hard for buyers being that there are no homes available. In a normal market we see a 6-month supply of homes for sale and anything over that indicates it’s a buyers’ market, an inventory level below that threshold means we’re in a sellers’ market and today’s inventory level sits WELL below the norm.

Though all of this we know you know, now onto the good news! Despite all the low inventory we have been seeing, there is hope on the horizon!

Senior Economic Research Analyst at realtor.com, explains:

“In May, the share of newly listed homes compared to active daily inventory hit a historical high of 44.4%, 17.3 percentage points higher than last year and 15.1 percentage points above typical levels seen in 2017 to 2019. This is a reflection of quickly selling homes and, for buyers, it means that while they can expect fresh new listings every week, they will have to be prepared to move quickly on desirable homes.”

As for newly built homes, Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), shares:

“Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates, and a growing demographic of prospective home buyers.”

Now all this being said is yes it is still hard for homebuyers right now to find a home but according to the stats above there is hope on the horizon!