The Supply Issue
The real estate market in the US is a booming juggernaut that is definitely full of twists and turns. With the uncertainty of the elections the number of already low listings available to buy decreased. It is normal for listings to decrease around this time usually due to the holidays, however, the decrease compared to last year is very significant, about 10% lower.
Available inventory this year is 39% lower than this time last year. That is a major shift in availability. Many were predicting a housing bubble due to the fast growth in the market; however, a problematic lack of supply and a lack of housing crisis is the path we are on as opposed to a bubble caused by price increases.
The few homes that are being listed are selling, on average, 13 days faster than they were in 2019. Prices keep going up, and inventory keeps decreasing, the average price increase over the past few weeks has been 12%.
However, the pause in activity caused by the election bodes one question, will buyers and the significantly fewer sellers resume activity once the election buzz calms down.
There is cause to believe that a potential vaccine will help the stock market begin a growth trajectory and the economy will begin to bounce back, this will cause mortgage rates to rise and correct themselves. Will buyers be even more anxious to buy before that happens or will low supply and continued price increases finally put a stop to the buying frenzy?
Amin Vali can help you navigate these unknowns, whether you are buying or selling this year. Amin Vali Real Estate Investment is available for investment advice and partnerships, if you are looking to take advantage of the current real estate boom.
Civil Engineer, MBA, Real Estate Agent
Amin Vali Real Estate Inc.
Persian Realtor,Persian Real Estate,
Cell phone: +1 (949)220-1000
Phone : +1(310)300-0011
Web : www.aminvali.com
E-mail : firstname.lastname@example.org
Realtor in Zutila Inc.