When you look to buy, sell, or invest in a home today, I wanted to talk to you about housing inventory. Who, what, when, where, why of housing inventory and how that affects us as home buyers and home sellers because those are on opposite ends of the pole being a buyer versus being a seller, so breaking that down what’s interesting about today’s market is we are now fully recovered or moved on from the recession mostly but we still have a supply and demand concern and so what makes that happen first and foremost right now. We are seeing that first-time homebuyers are purchasing less frequently.
They do historically normally first-time homebuyers makeup 45 and upwards of even fifty percent of the home buying market. As it right now, they’re hovering more around a third why some of that is jobs and income. Some of it is school debt. Many first-time homebuyers, which are traditionally made up of individuals in their 20s and 30s, the Millennials who have graduated from college and high school out of a recession, have a different economic status.
The generations before them so housing hasn’t become as important as flexibility does that affects housing supply because it is a ripple effect when buyers on the front end don’t buy that means move-up buyers and next step buyers don’t end up purchasing because they stay in their homes longer this, in turn, will affect days on the market if days on the market for a home will last longer. It takes homes longer to sell the offer prices generally at lower prices if a home sits on the market longer.
All of these things create a big stew that basically makes up housing inventory now to throw in an extra step on top of that builders basically during the recession stop building and has now come back in gangbusters to start to put more supply to meet up with the pent up demand, so we’re seeing a very normalization of the marketplace that’s great for us all but will continue to trend upwards as first-time buyers become more prevalent in the market if you’re ever interested in finding out more tips or trends that are happening in the marketplace or are interested in finding out what your home is worth or what other homes are on the market that you may be interested in please feel free to click on any of our links below or get in touch with me whenever is convenient the team. I would love to help you with any questions that you have a great rest of the day, and we will talk to you…
Compass
Realtor/ Broker (BRE: 01958545)
Beverly Hills: 424-239-6519
Minneapolis: 612-294-0447
