A Housing Shortage...For Now?
After a rough 2020, the housing market has rebounded in 2021. However, the major challenge that many homebuyers are finding is a lack of inventory. Supply just cannot keep up with the demand. A normal market has a six-month supply of homes for sale, but according to the National Association of Realtors, April's unsold inventory sits at a 2.4-month supply at the current sales pace.
Since the pandemic began, sellers have remained cautious about putting their homes on the market. While inventory currently remains low, more people are looking to purchase homes thanks to low mortgage rates. This influx of buyers is saturating an already limited market.
Despite the current low inventory, analysts are noticing hope on the horizon. In May 2021, the share of newly listed homes hit a historical high of 44.4%, which is about 15% higher than the typical levels seen between 2017 to 2019. This is a reflection of homes selling quickly, and it gives buyers a chance to see new listings every week.
Although you might feel frustrated when shopping for a home in today's market, rest assured that the market will change, and more homes should be available in the future.