Low Housing Inventory: A Great Time to List Your Home

Housing inventory is one factor that drastically affects the status of the real estate market. Depending on inventory you’re either in a buyer or seller market which brings different advantages and downfalls. Housing inventory can fluctuate year to year or seasonally so it’s important to know what to look for as a seller and a buyer.

According to Forbes’ prediction, 2020 will have the biggest housing inventory shortage in U.S. History. The same goes well with the real estate market in Bend. The number of listings continues to decrease, while the buyers’ demands continuously increase. Thus, listing prices tend to rise up.

Does this mean that home sellers would have a greater opportunity than that of the buyers? Let’s find out!

How Does Low Housing Inventory Affect Home Buyers?

Having a low housing inventory means there is a decline in the number of home listings, while on the other hand, the demand for them is continuously increasing over time.

“This lack of homes has made competition among buyers — buoyed by otherwise favorable economic conditions — even more fierce, in turn helping to push up prices even faster.”

Matthew Speakman, Zillow Economist (2020)

This limited supply of homes for sale is the root cause of why there is an unceasing increase in home prices. Thus, buyers tend to fight over the few houses left on the market.

When demand is constant but inventory is reduced, price tends to increase because the same number of people are trying to buy a smaller than the normal number of homes.

This is a snapshot showing the number of homes for sale and listing prices in Bend from June 2019 to May 2020. It is very evident that whenever the number of listings is declining, the listing prices would continue to rise.

For buyers, this means that there will typically be a lot more competition for available homes, so it may take longer to find a home that’s right for you and your budget.

Low Housing Inventory And Its Advantages To Sellers

Low inventory definitely gives an advantage to sellers right now since there isn’t as much product to sell compared to normal trends.

Low housing inventory puts the real estate market in a seller’s market. This means that sellers can get more money for their property. When there is low inventory there will typically be multiple offers on available homes, quickly driving up the price.

If the inventory will stay low, multiple offers on the remaining homes for sale will become a trend. Hence, sellers would tend to increase their home prices.

Bottom Line

If you’re a home seller in Bend and waiting to list until after this pandemic outbreak is over, then you are missing out on a terrific seller’s market! List your home with us now. Call 541-306-3139!