Inventory Continues To Be A Challenge

Dated: 03/12/2018

Views: 50

In any given market, inventories fluctuate based on supply and demand considering area and price range. The National Association of REALTORS considers a balanced market to beImage title a six-month supply of homes.

If it takes longer than six months to sell, it is thought to be a buyer's market and less than six months, a seller's market. Most buyers and sellers probably feel a balanced inventory is more like three months' supply of homes.

The inventory of existing homes has been reduced to approximately 1.5 million houses which is 10.3% lower than a year ago. According to the Federal Reserve Bank of St. Louis there are 5.7 months' supply of new homes currently on the market in the U.S.

Inventory has a direct impact on price. When demand is constant, but inventory is reduced, price tends to increase because the same number of people are trying to buy a smaller than normal number of homes.

As easy as it is to recognize the signs of spring, one should be able to spot the direction prices will be moving. When prices and mortgage rates are increasing, buyers are affected by not being able to afford the same price or size of homes.

Blog author image

Mary Ann Lightfoot

I’m originally from Chicago, IL & relocated to Las Vegas in 1979 • Graduated from University of Phoenix with a Bachelor in Business Management • 15+ yrs in Management with Del Webb Sun City Comm....

Latest Blog Posts

Things Buyers Should NOT do While in Escrow

Here's a brief list of things I have run into over the years with buyers in escrow:1) don't make large deposits into your bank account2) don't go out and buy furniture, a car, anything for the house

Read More

What to Avoid Before Closing Your New Home

It’s understandable; you’re excited; you’ve found the right home, negotiated a contract, made a loan application and inspections.  Closing is not that far away, and you

Read More

Master Bathroom Remodel

You got an amazing deal on your home, in part because the master bathroom was kind of really outdated. The wallpaper says it all — and that pink toilet, oh boy. You are so ready to do

Read More

Oakland Raiders moving to Las Vegas

Hello all, I am looking for buyers who are planning on moving to the Las Vegas area around the time the Oakland Raiders come to our area as a professional team.If interested in the homes available

Read More