A Lack of Listings Remains ‘Huge’ Challenge in the Market

 

The housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures & short sales) are at their lowest mark in over 8 years. This has been, and will continue to be, a great year for real estate.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. According to the National Association of Realtors (NAR), buyer traffic and demand continues to be the strongest it has been in years. The supply of homes for sale has not kept up with this demand and has driven prices up in many areas as buyers compete for their dream home.

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Traditionally, the winter months create a natural slowdown in the market. Jonathan Smoke, Chief Economist at realtor.com, points to low interest rates as one of the many reasons why buyers are still out in force looking for a home of their own.

“Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”

NAR’s Chief Economist, Lawrence Yun, points out that the inventory shortage we are currently experiencing isn’t a new challenge by any means:

"Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in. Unfortunately, there won't be much relief from new home construction, which continues to be grossly inadequate in relation to demand."REAL ESTATE MARKET DATA BROWARD COUNTY FLORIDA 3Q 2016

That's National Information. Let's look a little closer to what's happening in Broward County Florida:

 

When Looking at the big picture in Broward County we can see tat inventory is below 3 months under $500,000 Range. Homes priced right are selling quickly and a new report shows in Broward County 30% of listings that sell first time are selling for OVER Asking Price! It's a great time to be a seller in the Under $500,000 range due to dangerously low inventory for Single Family Homes.

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For Sellers in the over $500,000 Price Range, please look at the numbers. A Balanced Real Estate Market is 6 Months inventory, anything over 6 months of inventory switches to a Buyers market, meaning sellers have more competition and fewer buyers! Hire a Real Estate Professional who understands this data and can help you strategically price a property correctly.

Bottom Line

Healthy labor markets and job growth have created more and more buyers who are not just ready and willing to buy but are also able to. If you are debating whether or not to put your home on the market this year, now is the time to take advantage of the demand in the market.

Whether you are thinking of Buying or Selling a Home contact a professional realtor who cares about you and your time. Contact Jay Cermak Top Fort Lauderdale Real Estate Agent at 954.235.3589 and schedule a FREE Real Estate Consultation today.