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From its lowest point in February, the inventory of existing homes has increased by 22%. The increase in inventory, according to many in the media, will cause a housing crash. However, a closer inspection reveals that this increase in inventory is a regular occurrence that takes place every spring and summer.
Families prefer that their kids start the school year in a new class so that they can make friends more quickly. As a result, the sale of their new home would have to be finalized before September. To do this, they would obviously need to list their current home for sale in the spring and summer, which explains why the inventory builds at this time every year.
Additionally, there are currently less than half as many existing homes for sale as there were before Covid. Therefore, the rise we have observed actually comes from a historic low. Additionally, more than half of the houses included in the inventory are under contract. This indicates that actual inventory is even lower than indicated by the headline.
It's not entirely bad that inventory has increased from such low levels because it makes buying a house a little simpler. Despite the fact that demand has decreased, it is extremely unlikely that the housing fears reported in the media will come true. Contact me to find out what the forecast for appreciation in your neighborhood is!
Families prefer that their kids start the school year in a new class so that they can make friends more quickly. As a result, the sale of their new home would have to be finalized before September. To do this, they would obviously need to list their current home for sale in the spring and summer, which explains why the inventory builds at this time every year.
Additionally, there are currently less than half as many existing homes for sale as there were before Covid. Therefore, the rise we have observed actually comes from a historic low. Additionally, more than half of the houses included in the inventory are under contract. This indicates that actual inventory is even lower than indicated by the headline.
It's not entirely bad that inventory has increased from such low levels because it makes buying a house a little simpler. Despite the fact that demand has decreased, it is extremely unlikely that the housing fears reported in the media will come true. Contact me to find out what the forecast for appreciation in your neighborhood is!