Here’s what historically low supply means for our housing market.

If you’ve been watching or reading our market updates, we might be starting to sound like a broken record. Inventory is still very low, and it’s the driving force behind our market. On top of that, supply might not increase for some time. What does this mean for real estate?

From April 2021 to April 2022, inventory has remained at all-time lows. This tells us a few things about our market. First, demand is still high, and prices will continue to increase. Second, this problem won’t go away overnight. It could take years before our market has a normal amount of homes for sale.

So does this mean our real estate bubble is about to pop? Not quite. Bubbles burst when supply catches up to an unusually high level of demand. In our current market, this isn’t happening any time soon.

“It could take years for inventory to return to normal.”

Interest rates recently increased from 3% to around 5%. As a result, buyers are flooding the market to try and take advantage of historically low rates while they can. A 5% rate is still very good compared to the historical average, but the Federal Reserve has hinted that they’ll increase them again later this year.

Now is a fantastic time to sell. You can easily receive top dollar, and your home will only be on the market for a couple of days. However, some sellers are hesitant because of our low inventory. Sure, they can sell, but where do they stay while shopping for a new house? Our team has a program that practically guarantees your home purchase ahead of time so you can shop for a new property at your leisure. If you have any questions about this program, please reach out to us for more details.

As always, if you have questions about today’s topic or anything else, please call or email us. We are always willing to help.