There has been a housing shortage in the USA for years. Declines in housing inventory have happened annually for the last 4 years. This has resulted in record-low inventories and it is the reason for so much competition and rising home prices. Well, it looks like that trend is about to shift which is good news for buyers in 2019!
At the end of December, Zillow issued a report on housing inventory, showing the number of homes in the market in the US rose by 0.4% in November 2018. This was the third consecutive month that the US market has shown inventory increases. That’s the first positive streak for buyers since inventory started plummeting back in 2014.
What About Sellers?
This is the time to buy and sell, and we recommend you do so quickly. Obviously for buyers, the competition is lower, there are more options and with more housing options, buying a home will be less expensive.
Yet, it is also an important time for sellers to take note!
Many realtors believe that the market is shifting but may level off in 2019, with a potential decline in 2020/2021. Of course the asset type, and mortgage rates will affect this significantly, although it appears the feds may continue with small rates hikes. Condos and luxury homes will most likely be the first to depreciate and it is already showing in the condo market.
If you are considering selling and then purchasing to stay in a new home for a decade or more, we recommend you do it quickly. This is because, if there is a downturn, you will have enough time to recover during the next 10 years. It would be better to be in the place you want to be in, than the place you wanted to sell.