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Video Transcript Below
Is The Housing Market Slowing Down? Is now a good time to buy a home?
The world is changing quickly, and we can see how much it is affecting the housing market. But why are we seeing such a large shift in the market? Hey there, I’m Tristan Colborg, The Denver Real Estate Agent. Let’s see what experts have to say about the shift in the market.
In the past couple of months, the amount of homes for sale has increased. Mark Fleming, Chief Economist at First American says, “There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings…but rather from a slowdown in the pace of sales. And remember that a months’ supply measures the inventory of sales relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.” So to break down what Mark said is, we are seeing the same number of homes going up for sale, but it is taking longer to get them sold.
“There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings…but rather from a slowdown in the pace of sales. And remember that a months’ supply measures the inventory of sales relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”
Housing Inventory Is On The Rise
For example, in January of this year, the national housing inventory level was only 1.6 months, and the latest data has us up to 2.6 months of inventory. While this may not seem like a huge difference, it is enough to impact the market. Looking at the inventory from last year, we see that more homes are on the market now than last year.
Buyers have more and more options now, resulting in more competition amongst sellers to try and get their homes sold. Sellers are reducing prices and being more realistic to compete with the increase in inventory, which means buyers have more power and options than they have had in quite a few years. So with more listings and options available for home buyers, now is the time to reach out to me about getting into your dream home. Again I’m Tristan Colborg, The Denver Real Estate Agent with eXp Realty, and remember, you deserve an elevated real estate experience.
