What Does Low Housing Inventory Do to The Market

A picture of a SOLD sign in front of a home

As we entered into COVID in 2020 a lot of homebuying and home building stopped with all the uncertainty. As we have been coming out of the pandemic people are still reluctant to sell their homes and it has created a very large housing shortage as well with so many buyers and not enough inventory.

This has created and really it has been a sustained seller’s market which continues to keep the prices of homes high and in some areas of the country increasing prices. Many consumers took advantage of low interest rates during this time as well and are reluctant to refinance out of the 2 – 3% mortgage for something today with rates between 6 – 7%.

In a seller’s market homes go onto the market and sell fast with multiple offers and usually above asking price. The challenge for all of us is if you are selling your home you are probably going to buy another home now at a higher price and higher interest rate. The average housing shortage usually take a few months to stabilize and improve but with the current one coming out of COVID nobody is really certain.

As always, consult with your real estate and mortgage professional to learn more and receive sound advice.