Low Inventory is Concerning Real Estate Professionalsadmin / 0 Comments /
The low inventory of homes for sale is causing some real estate companies to panic a bit. The number of homes for sale March 2017 compared to March 2016 fell seven percent according to the National Association of Realtors. In an article published by CNBC by Dian Olick, she quotes Glenn Kelman, CEO of Seattle-based Redfin, a real estate firm, “”The inventory is reaching historic lows. It’s never declined faster than it did last month. It’s freaking us out — it’s affecting our business; it’s limiting our sales.”
The cause of this low inventory issue can be attributed to a few factors. To begin, many homeowners are deciding to become landlords. Instead of selling a home when moving on, homeowners are holding on to their home and renting it out. Another reason is new home construction is declining. On average, home builders are building about 18 percent fewer homes than the historic average.
The good news for home owners looking to sell, homes are selling quickly and some are even selling above list price. Homes in April 2016 went under contract in 50 days, as of April 2017, that number decreased to 40 days.
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