Inventory Levels at Historic Lows

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One of the biggest challenges facing the housing market today is the lack of homes for sale. This is such a reverse from the last few years, where inventory, especially in distressed foreclosure or short sale properties, had flooded the market and caused prices to drop dramatically. The above chart shows the national inventory levels, dating back to November 2012, where a normal market inventory is marked at five to six months. Demand for homes, however, has begun to increase, as shown by the pending home sales report above, and are continuing to dip into the inventory levels, driving it below a normal level. Currently, the Milwaukee-area inventory level is 19.1% lower than at the same time last year and nationally home listings are at a 12-year low. While this does temporarily mean that prices are higher, the lack of inventory could stall the momentum needed for the market to fully recover. If you are looking to sell, now is a great time to list your home and start adding to the inventory available for buyers!

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Categories: Home Buying, Home Selling, Real Estate News

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