The second quarter has come to a close. The metrics are not fully recorded to this point, but there are certainly some indications that the market, while maintaining healthy, looks to begin to have some subtle change in the near future. The exciting change centers on a strong possibility that housing inventory may be on the rise. The National Association of Realtors’ Housing Opportunities and Market Experience survey released this past week presented some key findings.
Per the HOME survey, inventory is on the rise. Which will provide much relief to a market desperate of new homes. The survey indicated that 46% of consumers are strongly optimistic that now is a good time to sell. This up from 37% in the first quarter. Coupling that with the realization by most homeowners that the year after year sales price climbs are moderating, you have a large segment of people ready to list their home and capitalize while they can.
It makes perfect sense to have been unwilling to list your property due to possessing favorable interest rates and an expectation that your return would be higher next year. Not to mention, where would you go. If the market is thin as it it, you sell your home, now you have to find a new one. Those times are changing though it would seem.
For years now the inventory has been at all time low levels, allowing home sellers to capitalize on a thin market. It has also forced many buyers to sit back and wait longer to find the home they want, or spend more to avoid coming up short in a deal.
What is also positive is that the HOME survey showed a 38% response of “strongly agreeing” now it a good time to buy, and 27% “moderately agree” now is a good time to buy. Coupling that with consumer belief the economy continues to show signs of growth.
If this all holds, and rates maintain record lows, the market could get really hot late this summer and maintain activity into throughout the fall.