Waxhaw, NC – The Biggest Perk for Sellers: Low Inventory

In my last column, I wrote about low-interest rates.  In this column, let’s talk about low inventory.

Waxhaw saw a 51.2% year-over-year increase in new listings last month as sellers are gaining confidence and taking advantage of a robust market and as the housing market continues to play catch up following a lackluster Spring with a limited home inventory.

Demand is so high that year over year pending sales numbers have far exceeded 2019 numbers since May.  Having fewer homes to choose from is what makes this a seller’s market.

Today, there are simply not enough houses on the market for the number of buyers looking to purchase them, which is great news for sellers. According to the National Association of Realtors (NAR):

“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million).”

The red bars in the graph below indicate that the inventory of homes available to buyers continues to decline. It was low as we entered the pandemic and has reduced even further this year. Houses today are selling nearly as quickly they’re being listed, and that’s creating an even greater supply shortage (See graph below):

The limited inventory has been a challenging situation for a while now, and with low mortgage rates fueling buyer demand, homes are even harder for buyers to find today because the best ones don’t last for long.

Buyers are eager to purchase, and because of the shortage of homes available, they’re encountering more bidding wars. This is one of the factors keeping home prices strong, an advantage for sellers. Lawrence Yun, Chief Economist for NAR notes that this trend may continue, too:

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

With low inventory and high buyer demand, homeowners can potentially earn an increasing profit on their houses and sell them quickly in this sizzling summer market.

Bottom Line

Whether you’re thinking about buying or selling at home, there are some key perks available right now. Let’s connect today to discuss how they may play to your advantage in our local market.