It sounds like a broken record repeating itself for the past two years. Housing inventory levels fall again in April. We did see a glimmer of hope for homebuyers in the $400-$600k range and in the $600k-$1 million range as listing inventory increased. However, the market scooped it all up and sales increased which drove their months’ supply of inventory down with it.
Not only did overall inventory decline to a .78-month supply, but every single price range also saw drops in levels as well. This is a broad market inventory decline across the board. Many times, we will see segments of the market doing better than others. In this case, all price segments are seeing housing inventory levels fall.
Recent reports by Freddie Mac indicate the US is 3.8 million homes short of meeting the United States housing demand. This shortage has led to buying frenzies across the nation at a time when millennials are entering the market. Combine with the fact that people are relocating more as they learn to work remotely, and you have a recipe for increased demand and not enough supply.
Historically low rates have also fueled people to either stay in place and refinance or make the move. Now that rates have risen a bit from their lows, less people are refinancing. Because of this, we believe 2021-2022 will be the timeframe when more people decide to sell what they have and make a move.
It will be interesting to watch inventory levels. As more people sell so they can purchase, will this increase inventory? Because we have this shortage it may not make a big enough dent. Demand may still outstrip supply.
We have noticed an uptick in home sellers wondering if now might be the time to sell. They like that prices have risen, and they are beginning to weigh their options. Some sellers are questioning how much they love their home and if they should risk holding on to it longer. Prices have risen significantly the past several years, and this might be the point in time home sellers have been waiting for.
How Long Will it Last?
The dilemma is how long will this last? Nobody wants to leave money on the table, and yet, sellers do not want to wait too long and miss the top of the market. The reality is you will never know the top of the market until it has passed. By then, it is too late and headed down. When the market heads down, it can be a long, slow ride lasting several years. Buyers do not like buying when the market is headed down. Once word gets out, some buyers shut off out of fear and wait until the market bottoms. That process can take several years.
Our best advice is, if you love the home you are in and it suits your needs, you do not need to do anything. If your home no longer suits your needs, and you do not absolutely love it, now may be the time to explore.
For over a decade many SW Florida homeowners were trapped in a home they did not love, but because the market turned so drastically, they were trapped. We do not see any signs today’s market will be like 2005. What we are saying is it can be frustrating owning a home that does not suit your needs for too long.
Always Call the Ellis Team
Call Brett or Sande Ellis 239-310-6500 and we can discuss your options. We will talk about where you would go if you did sell, and what timeframe would work for you. Or, if you are just curious for now, you can go to www.SWFLhomevalues.com and get an instant and free home valuation on your home. It emails you a report in minutes and is a good starting place for a conversation.
Whatever your housing situation, Brett and Sande are here to answer your questions. We should talk!
Good luck and Happy House Selling!