One question that’s top of mind if you’re thinking about making a move today is: Why is it so hard to find a house to buy? And while it may be tempting to wait it out until you have more options, that’s probably not the best strategy. Here’s why.

There aren’t enough homes available for sale, but that shortage isn’t just a today problem. It’s been a challenge for years. Let’s take a look at some of the long-term and short-term factors that have contributed to this limited supply.

Underbuilding Is a Long-Standing Problem

One of the big reasons inventory is low is because builders haven’t been building enough homes in recent years. The graph below shows new construction for single-family homes over the past five decades, including the long-term average for housing units completed:

For 14 straight years, builders didn’t construct enough homes to meet the historical average (shown in red). That underbuilding created a significant inventory deficit. And while new home construction is back on track and meeting the historical average right now, the long-term inventory problem isn’t going to be solved overnight. 

Today’s Mortgage Rates Create a Lock-In Effect

There are also a few factors at play in today’s market adding to the inventory challenge. The first is the mortgage rate lock-in effect. Basically, some homeowners are reluctant to sell because of where mortgage rates are right now. They don’t want to move and take on a rate that’s higher than the one they have on their current home. The chart below helps illustrate just how many homeowners may find themselves in this situation:

Those homeowners need to remember their needs may matter just as much as the financial aspects of their move.

Misinformation in the Media Is Creating Unnecessary Fear

Another thing that’s limiting inventory right now is the fear that’s been created by the media. You’ve likely seen the negative headlines calling for a housing crash, or the ones saying home prices would fall by 20%. While neither of those things happened, the stories may have dinged your confidence enough for you to think it’s better to hold off and wait for things to calm down. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says:

“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”

That’s further limiting inventory because people who would make a move otherwise now feel hesitant to do so. But the market isn’t doom and gloom, even if the headlines are. An agent can help you separate fact from fiction. 

How This Impacts You

If you’re wondering how today’s low inventory affects you, it depends on if you’re selling or buying a home, or both.

• For buyers: A limited number of homes for sale means you’ll want to seriously consider all of your options, including various areas and housing types. A skilled professional will help you explore all of what’s available and find the home that best fits your needs. They can even coach you through casting a broader net if you need to expand your search.
• For sellers: Today’s low inventory actually offers incredible benefits because your house will stand out. A real estate agent can walk you through why it’s especially worthwhile to sell with these conditions. And since many sellers are also buyers, that agent is also an essential resource to help you stay up to date on the latest homes available for sale in your area so you can find your next dream home. 

In Summary, 

The low supply of homes for sale isn’t a new challenge. There are a number of long-term and short-term factors leading to the current inventory deficit. If you’re looking to make a move, let’s connect. That way you’ll have an expert on your side to explain how this impacts you and what’s happening with housing inventory in our area.

An important factor shaping today’s market is the number of homes for sale. And, if you’re considering whether or not to list your house or get your Lilburn Home Valuation, that’s one of the biggest advantages you have right now. When housing inventory is this low, your house will stand out, especially if it’s priced right.

But there are some early signs that more listings are coming. According to the latest data, new listings (homeowners who just put their house up for sale) are trending up. Here’s a look at why this is noteworthy and what it may mean for you.

More Homes Are Coming onto the Market than Usual

It’s well known that the busiest time in the housing market each year is the spring buying season. That’s why there’s a predictable increase in the volume of newly listed homes throughout the first half of the year. Sellers are anticipating this and ramping up for the months when buyers are most active. But, as the school year kicks off and as the holidays approach, the market cools. It’s what’s expected.

But here’s what’s surprising. Based on the latest data from Realtor.com, there’s an increase in the number of sellers listing their houses later this year than usual. A peak this late in the year isn’t typical. You can see both the normal seasonal trend and the unusual August in the graph below:As Realtor.com explains:

“While inventory continues to be in short supply, August witnessed an unusual uptick in newly listed homes compared to July, hopefully signaling a return in seller activity heading toward the fall season . . .”

While this is only one month of data, it’s unusual enough to note. It’s still too early to say for sure if this trend will continue, but it’s something you’ll want to stay ahead of if it does.

What This Means for You

If you’ve been putting off selling your house, now may be the sweet spot to make your move. That’s because, if this trend continues, you’ll have more competition the longer you wait. And if your neighbor puts their house up for sale too, it means you may have to share buyers’ attention with that other homeowner. If you sell now, you can beat your neighbors to the punch.

But, even with more homes coming onto the market, the market is still well below normal supply levels. And, that inventory deficit isn’t going to be reversed overnight. The graph below helps put this into context, so you can see the opportunity you still have now: 

In Summary

Even though inventory is still low, you don’t want to wait for more competition to pop up in your neighborhood. You still have an incredible opportunity if you sell your house today. Let’s connect to explore the benefits of selling now before more homes come to the market.

Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about  selling your Lilburn, Lawrenceville or Snellville house, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to downsize or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead?

That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.

Expect Rents to Keep Going Up

The graph below uses data from the Census to show how rents have been climbing steadily since 1988:Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.

When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac sums it up like this:

“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”

Owning Your Home Comes with Unique Benefits

According to AARP, buying your next home is a better long-term strategy than renting:

“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”

To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers:

• Owning your home can help you save money for the future. Your residence and the equity you accumulate as a homeowner have the potential to create generational wealth that can be passed down to your loved ones, improving their quality of life.
• You might not have to pay a monthly mortgage payment at all. If you possess sufficient equity to purchase your next home in full, you won't have to make a monthly mortgage payment. Although you may still need to budget for property taxes or maintenance expenses, the absence of a monthly mortgage payment can provide significant financial relief.
• Aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.

In Summary,

If you're a baby boomer who’s wondering whether you should buy or rent your next home, let’s connect. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.

Good afternoon, esteemed Stone Mountain Single Family Home sellers. Today, we will dive into the correlation between various real estate metrics that will undoubtedly pique your interest. By analyzing these crucial data points, we aim to provide you with valuable insights into the current market conditions and trends.

Let's start with the Months Supply of Inventory, which currently stands at a commendably low figure of 1.68. This metric represents the number of months it would take to sell all the existing homes on the market if no new properties were listed. A lower supply of inventory indicates a seller's market, where demand outweighs supply, thus potentially leading to higher prices and faster sales.

Now, let's examine the 12-Month Change in Months of Inventory, which reveals a notable decrease of -11.58%. This significant drop indicates a consistent trend of decreasing inventory over the past year. Such a decline can be attributed to a surge in demand, which has outpaced the rate at which new properties are being listed. As a result, sellers can expect a more competitive market, potentially leading to quicker sales and favorable pricing conditions.

Moving on, we encounter the Median Days Homes are On the Market, which currently stands at a remarkably low figure of 16. This metric measures the average number of days it takes for a home to sell once it is listed. With such a short time frame, it is evident that properties are swiftly attracting potential buyers. This rapid turnover indicates a strong market with high demand and a limited supply of desirable homes.

Next, let's explore the List to Sold Price Percentage, which proudly stands at an impressive 98.5%. This metric reveals the average percentage of the listing price that sellers are able to achieve when finalizing a sale. A high percentage such as this indicates that sellers are typically able to secure a price close to their initial listing price. This suggests that buyers are willing to pay a premium for the properties available, further strengthening the seller's position.

Lastly, we shall delve into the Median Sold Price, which currently stands at a respectable $361,500. This figure represents the midpoint of all the sold prices in the market, indicating the average price at which properties are being successfully sold. A higher median sold price implies that sellers are obtaining favorable returns on their investments, reinforcing the positive market conditions and potential financial gains.

In conclusion, the correlation between these real estate metrics paints a compelling picture for sellers. The low Months Supply of Inventory, coupled with a decreasing trend in inventory over the past year, indicates a market heavily favoring sellers. Additionally, the short Median Days Homes are On the Market and the high List to Sold Price Percentage further solidify the advantageous position of sellers. Lastly, the strong Median Sold Price showcases the potential for profitable returns on your real estate investments.

By considering these metrics, sellers can confidently navigate the current market conditions, capitalize on the high demand, and make well-informed decisions to maximize their selling potential.

Ladies and gentlemen, today I want to talk to you about some fascinating real estate metrics that every seller should be aware of. These numbers hold valuable insights into the current market conditions and can help you make informed decisions when it comes to selling your property. So, let's dive right in!

First up, we have the Months Supply of Inventory, which currently stands at 1.09. Now, this metric represents the number of months it would take to sell all the available homes on the market if no new listings were added. A lower number indicates a seller's market, where demand outweighs supply. In this case, with a supply of just over one month, we can confidently say that the market is highly favorable for sellers. Buyers are actively seeking properties, and competition is fierce!

But that's not all. The 12-Month Change in Months of Inventory is also a crucial figure to consider. And in this case, we see a significant decrease of -43.81%. This indicates a rapid decline in the number of homes available for sale over the past year. Such a sharp decline suggests a tightening market, with limited options for buyers. Sellers, rejoice! With fewer properties to choose from, your home becomes even more valuable and desirable.

Now, let's talk about the Median Days Homes are On the Market, which currently stands at a mere 17 days. Yes, you heard that right! Properties are flying off the shelves in this market. This metric represents the average number of days it takes for a home to go under contract once it's listed. And with just 17 days, it's clear that buyers are acting swiftly, eager to secure their dream homes. So, if you're thinking of selling, be prepared for a fast-paced and exciting process!

Next up, we have the List to Sold Price Percentage, which is an impressive 99.3%. This metric represents the average percentage of the listing price that homes are actually selling for. And with such a high percentage, sellers can rest assured that they are likely to receive a price very close to their asking price. Buyers are willing to pay a premium in this competitive market, making it an ideal time to maximize your return on investment.

Finally, let's discuss the Median Sold Price, which currently stands at $375,000. This figure represents the middle point of all the sold prices in the market. It's a strong indicator of the overall price range and can help sellers gauge the potential value of their own property. With a median sold price of $375,000, sellers can expect to fetch a handsome sum for their homes, given the high demand and limited supply.

In conclusion, sellers, you are in luck! The current real estate market is in your favor. With a low Months Supply of Inventory, a significant decrease in the 12-Month Change in Months of Inventory, a short Median Days Homes are On the Market, a high List to Sold Price Percentage, and a healthy Median Sold Price, now is the perfect time to sell your property. So, seize this opportunity, work with a trusted real estate agent, and reap the rewards of a thriving market. Good luck!

Are you putting off selling your house because you’re worried no one’s buying because of where mortgage rates are? If so, know this: the latest data shows plenty of buyers are still out there, and they’re purchasing homes today. Here’s the data to prove it.

The ShowingTime Showing Index is a measure of buyers touring homes. The graph below uses the latest numbers available and compares them to the same month in the last normal years to show just how active today’s buyers still are:

As you can see, when June 2023 numbers are stacked alongside what’s typical for the housing market at this time of year, it's clear buyers are still active. And, they’re actually a lot more active than the norm.

If you’re wondering how this could possibly be true, it’s because buyers are getting used to higher mortgage rates and accepting them as the new reality. As Danielle Hale, Chief Economist, Realtor.com, explains:

“Interest rate hikes continue to further cut into buyers' purchasing power, although they appear to have adapted to the higher mortgage rate environment . . .”

It’s simple. Buyers will always need to buy, and those who can afford to move at today’s rates are going to do so.

The Key Takeaway for You

While it’s true things have slowed down from the frenzy of the last couple of years, it doesn’t mean today’s market is at a standstill. The reality is: buyer traffic is still strong today. Even with today’s mortgage rates, plenty of buyers are still making their moves. So why delay your own move when there’s clearly a market for your house?

Bottom Line

Don’t put off your plans because you’re worried no one will buy your home. The opposite is true, and more buyers are more active than the norm. Let’s connect to get your house ready to sell, so it makes the best first impression possible on those eager buyers.