- May 19, 2023
- Posted by: Joyce Dialola
- Category: In the News
The US real estate market has been experiencing unprecedented low housing inventory leaving many potential buyers struggling to find suitable properties. The lack of inventory is primarily driven by sellers unwilling to sell their homes due to the historically low mortgage rates they have captured over the last few years. Watch Video
Historically low-interest rates have made borrowing money for a home more affordable than ever. However, this has also made it more attractive for sellers to hold onto their properties, given the low rates on their existing mortgages. As a result, there has been a significant shortage of homes on the market, making it difficult for buyers to find affordable properties and leading to bidding wars that drive up prices.
Home Inventory Has Declined Significantly
Housing Inventory: For comparison, in January 2019, there were 1,350,000 properties for sale; as of March 2023, there were 560,000 properties for sale which is significantly less than half of the normal market inventory.