As 2017 is shaping up to be a seller’s market with low interest rates and rising home prices, low housing inventory is another factor working in favor of sellers this year. In fact, housing inventory is at its lowest in nearly 20 years.
According to the National Association of Realtors, the number of for-sale listings fell in December 2016 to its lowest level since 1999, with just 1.65 million homes for sale on the market at the end of 2016. With the existing pace of sales, this supply would last about 3.5 months. A normal market boasts about a six month supply of homes for sale.
Among local markets across the country, communities with less than a three month supply of homes for sale increased from 13 percent to more than 20 percent in the past year.
So what’s the reason for the inventory lows? One contributing factor has to do with the fact that fewer homes are being constructed at a slower pace. According to the Bureau of Labor Statistics, construction employment nationwide hit its highest point since 2008; however that only happened after contractors agreed to offer more money to fill the construction worker shortage. Contractors are reporting that there simply aren’t enough qualified construction workers out there to hire.
Another reason that housing inventory is at an almost 20-year low has to do with the homeownership rate being at a near 50-year low, according to the NAR. Due to the low inventory causing rising home prices, first-time home buyers are having more trouble finding homes they can afford. First time home buyers make up about 30 percent of the market currently, whereas they historically have made up around 40 percent of the market.
In Auburn an Opelika, the trend of lower inventory than the previous year is also being reflected. According to the Lee County Association of Realtors, in December 2016 there were 399 houses on the market in Lee County compared to 489 houses on the market in December 2015. In Auburn specifically, there were 258 houses on the market in December 2016 compared to 294 the previous year, and in Opelika the numbers were 101 this past year compared to 132 in 2015.
Despite the lower-than-last-year housing inventory, there are still plenty of listings available for buyers in the Auburn-Opelika area. Contact Realtor Ryan Roberts to find a listing that will suit you! Call Ryan at 334-750-9872 or email [email protected].
