Homebuyers are flooding the housing market right now to take advantage of record-low mortgage rates. In addition, many have a sense of urgency to find a home soon since experts forecast a steady rise in both rates and home prices this year and next. As a result, buyer demand greatly outweighs the current housing supply. Here’s how the shortage of houses for sale sets yours up to be the oasis in an inventory desert.
According to the National Association of Realtors (NAR), today’s housing inventory sits at a deficient 2.1-month supply, far below the 6-month mark for a neutral market. The inventory of single-family homes a year ago was already shallow. As you can see in the graph below, this year’s levels are even lower: Due to these market conditions, today’s buyers frequently enter fierce bidding wars while trying to purchase a home. This, in turn, drives up home prices and gives sellers incredible leverage in the negotiation process, two big wins if you’re going to sell your house this year.