Top 5 Reasons for the Dip in Inventory


We’ve noticed that inventory is low across the country. Here are five reasons why that’s happening.



Today we’re going to talk about the top reasons for the incredible lack of inventory we’re seeing. This isn’t just happening in Richmond and the surrounding areas; it’s going on around the country. I have the unique opportunity of Masterminding with a lot of agents around the country, and this lack of inventory is definitely a national issue.

There are five points I want to touch on for this topic.

1. 47% of existing homeowners are worried they will not be able to find a home to buy. When almost half of the potential market is afraid to list their house for fear of not being able to find a new home, that’s a problem.
 
2. First-time buyer demand is absorbing a large share of available homes. These new buyers are driving the market right now.
 
When almost half of the potential market is afraid to list their house for fear of not being able to find a new home, that’s a problem.
3. 11.3% of existing homeowners’ mortgage rates are lower than the market rates are right now. They don’t want to give up the rates they’re comfortable with to move to a higher rate.
 
4. 10.6% of the whole market has insufficient or negative equity. It’s a small percent, but it is still impactful because those people aren’t able to sell their homes yet.
 
5. 4.6% of the reason is due to foreign buyer demand absorbing a share of available homes. They see real estate in the US as a really good long-term investment

All these figures together are the reason for which we’re experiencing such a lack of inventory right now.

If you’d like to dive into this further, please give me a call. I’d be happy to talk to you further about this issue, and, of course, to help you find a home. Be sure to make it a great day!
Labels: