It was just a few years ago that the US was in the midst of the worst inventory shortage in history, creating fierce competition for available properties—and driving up prices in the process. And while the market has become more buyer friendly in recent months, some experts predict another inventory shortage may be on the horizon.
According to a recent article from realtor.com, new home listings are either declining or staying the same in markets across the country. If that trend continues, it could mean another historic inventory shortage. “It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen,” said Danielle Hale, realtor.com’s chief economist, in the article. “If the trend we’re seeing continues, overall inventory could near record lows by early next year. So far there’s been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows.”
Today, there isn’t the fierce competition for property that the market saw a few years ago—but that could change with another inventory shortage. So if you’ve been thinking about buying a home, now’s the time to make a move.