According to recent reports, the number of homes available for purchase is up 19% overall across the country, compared to the same time last year. Despite this, however, housing prices remain high, due to enormous demand for housing, especially affordable housing. However, some experts are predicting that these high prices will not last much longer, and as more inventory enters the market, sellers may begin to lower their prices to compete.
The Increase in Housing Supply
The amount of available houses across the U.S. for sale this June was 19% higher than it was one year ago in June 2021, the fastest annual rate in five years. However, the amount of available houses are still only about half of what they were prior to the beginning of the COVID-19 pandemic. Danielle Hale, chief economist at Realtor.com, said that they “expect to see additional inventory growth in July, building on accelerated improvements seen throughout June.”
The State of the Market Right Now
As it stands, housing prices are now at the highest levels they have been since 2009, driven to extraordinary highs due to a substantial number of prospective buyers and a limited number of available houses. This drives prices up by increasing the number of people bidding on properties, meaning people may need to be willing to pay more to outbid competitors. Combined with increasing interest rates, this has led to the price of housing going beyond what many buyers can afford.
The Effect of Increased Housing Supply on the Market
With more houses being added to the market, the amount of competition for each individual property goes down. This will help to drive down prices, potentially making them more affordable for buyers who could not otherwise afford the sky-high prices of many properties on the market right now. This adds more pressure on sellers, however, as the longer they wait to put their homes on the market and secure a buyer, the more likely it is that they will not be able to get the most money possible for their properties.
How This Affects Consumers
For the average home buyer, the prospect of more inventory is good news, as it means more potential houses to buy for lower prices. However, for prospective sellers, this may be bad news, especially for those who bought their houses when home prices were at their height. Either way, it may be best not to wait, and to speak to people with expertise handling real estate transactions. The longer you wait to buy or sell, the more likely it is that you will miss out on a crucial opportunity for you and your family.
At Liongate Homebuyers, we assist our clients with a variety of services related to buying and selling real estate, including purchasing homes for cash. We have experience handling real estate financing, especially for developers and house flippers. If you are interested in selling your home for cash, please contact us at 516-548-6553, or visit our contact page.
