{"id":333,"date":"2018-10-19T00:18:18","date_gmt":"2018-10-19T00:18:18","guid":{"rendered":"http:\/\/renwre.info\/2018\/10\/19\/is-the-increase-in-inventory-a-bullish-or-bearish-sign-for-real-estate\/"},"modified":"2018-10-19T00:18:18","modified_gmt":"2018-10-19T00:18:18","slug":"is-the-increase-in-inventory-a-bullish-or-bearish-sign-for-real-estate","status":"publish","type":"post","link":"http:\/\/renwre.info\/?p=333","title":{"rendered":"Is the Increase in Inventory a Bullish or Bearish Sign for Real Estate?"},"content":{"rendered":"
\n

\"Is<\/p>\n

In a recent article, National Housing Inventory Crisis Reaches Inflection Point<\/a><\/em>, <\/em>realtor.com<\/em> reported that:<\/p>\n

    \n
  1. New listings jumped 8% year-over-year nationally, the largest increase since 2013<\/li>\n
  2. Total listings in the 45 largest markets are now up 6% on average over last year<\/li>\n<\/ol>\n

    <\/span><\/p>\n

    This increase in housing inventory has sparked two different reactions. Some are saying this is the first sign of a potential collapse while others are saying it is a welcomed reprieve from the lack of inventory that has stalled the market recently. As Zelman & Associates<\/a><\/em> reported in a recent \u2018Z Report\u2019:<\/p>\n

    \n

    \u201cWith the rate of home price appreciation starting to decelerate alongside the uptick in inventory, we expect significant debate whether this is a bullish or bearish sign.\u201d<\/em><\/p>\n<\/blockquote>\n

    Is this a sign the market might crash?<\/strong><\/h4>\n

    There are those who look at the increase in inventory as a sign that we are returning to the market we saw last decade. However, a closer look shows that we are nowhere near the levels of inventory we reached before the crash in 2008.<\/p>\n

    A normal market would have about 6-months inventory, but the latest Existing Home Sales Report<\/a><\/em> issued by the National Association of Realtors<\/em> revealed that:<\/p>\n

    \n

    \u201cUnsold inventory is at a 4.3-month supply at the current sales pace up from 4.1 months a year ago.\u201d<\/em><\/p>\n<\/blockquote>\n

    A decade ago, prices began to rapidly depreciate in June 2007. At that time, we had a 9.1-month supply (more than double what it is today) and inventory kept rising until it hit a peak of 11.1 months in April of 2008.<\/p>\n

    With the current levels of buyer demand, any such increase in months supply is highly unlikely. As Danielle Hale, realtor.com\u2019s Chief Economist<\/em> explains<\/a>:<\/p>\n

    \n

    \u00a0\u201cAfter years of record-breaking inventory declines, September\u2019s almost flat inventory signals a big change in the real estate market. Would-be buyers who had been waiting for a bigger selection of homes for sale may finally see more listings materialize. But don\u2019t expect the level to jump dramatically. <\/em><\/p>\n

    Plenty of buyers in the market are scooping up homes as soon as they\u2019re listed, which will keep national increases relatively small for the time being.\u201d<\/em><\/p>\n<\/blockquote>\n

    What will be the result of the increase in inventory? <\/strong><\/h4>\n

    The increase in inventory will allow many families who had been unable to find a home\u00a0to finally become homeowners. Again, we quote from the \u2018Z Report\u2019:<\/p>\n

    \n

    \u201cIn our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.\u201d<\/em><\/p>\n<\/blockquote>\n

    Bottom Line<\/strong><\/h3>\n

    If you are either a first-time or second-time buyer who has given up, let\u2019s get together discuss the inventory available in our market.<\/p>\n<\/div>\n

    Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

    In a recent article, National Housing Inventory Crisis Reaches Inflection Point, realtor.com reported that: New listings jumped 8% year-over-year nationally, the largest increase since 2013 Total listings in the 45 largest markets are now up 6% on average over last Continue reading Is the Increase in Inventory a Bullish or Bearish Sign for Real Estate?<\/span>→<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/posts\/333"}],"collection":[{"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=333"}],"version-history":[{"count":0,"href":"http:\/\/renwre.info\/index.php?rest_route=\/wp\/v2\/posts\/333\/revisions"}],"wp:attachment":[{"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=333"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/renwre.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}