I was speaking to another Real Estate agent today and we were discussing the current inventory of homes on the market. We typically like to see 6 months of inventory for it to be considered a “balanced market.” Currently we’re at about 5.1 months of inventory – that means that the current inventory nationally would last roughly 5.1 months. However in larger markets, such as the Central Florida market, we are looking at much less of an inventory… we also discussed that the price of renting has increased by 16% since 2010. This could possibly translate to an increase of those who were “on the fence” moving to home ownership. That means a potential increase to the less than balanced market from an inventory perspective. This article from the Florida Association of Realtors seems to be in line with my conversation today!
NEW YORK – July 21, 2015 – Bidding wars are returning to U.S. housing markets with too few homes for sale.
A number of conditions led to the current lack of for-sale inventory, including an unexpectedly sluggish rebound in home construction. At the same time, millions of homeowners aren’t listing their home because they don’t believe they’ll qualify for a new mortgage, or that they cannot afford the costs associated with a sale.
As of May 31, there were 2.3 million existing U.S. houses on the selling block – enough inventory to last 5.1 months at the current sales pace but shy of the six to seven months of supply that typically signals a balanced market.
But in more than 33 percent of the 300 biggest metro areas tracked by Realtor.com, listings have been on the market a median of less than two months, indicating a rapid turnover as demand for residential properties exceeds supply. Those include such large markets as Dallas and San Francisco along with smaller markets like Vallejo, California, and Kennewick, Washington.
Even in the face of a tight home listing inventory, some economists hope renters will add demand to the sector as rent increases continue, prompting many to pursue ownership. Apartment rents have climbed almost 16 percent in the United States since 2010, calculates Reis Inc.
I believe this is the perfect time for Central Florida home sellers and home buyers. With renters moving to home purchasing due to increased renting costs… sellers are likely to achieve the price they’re listing at… and for home buyers it’s the time to act before prices increase due to a tight inventory. Whether you’re a home seller or home buyer I can help. I know the central florida real estate market well and would love to assist you with your needs. It’s what I do every day, and I always make it about you! Call me at 321.293.2240 or simply fill out the brief form below!