An additional reason for the low inventory - the accuracy of the MLS database has increased due to technology. Inventory starts when a house is listed and removed when sold. Years ago, the removal was inconsistent and long delayed. With technological improvements, house sales are reported much quicker than in the past, hence lowering average inventory for any given period of time.
I'd be curious to know what regions are driving the decrease and how this generally varies by location. For example, where I live, house prices are up since December 2022 (at least according to Redfin)
An additional reason for the low inventory - the accuracy of the MLS database has increased due to technology. Inventory starts when a house is listed and removed when sold. Years ago, the removal was inconsistent and long delayed. With technological improvements, house sales are reported much quicker than in the past, hence lowering average inventory for any given period of time.
With rates being around 7-8% theres very little incentive for homeowners with 2-4% mortgages to sell, thus inventory being low
Great thoughts as always, Daniel. Excellent reminder for me that buying a home is a “needs-based” decision.
I'd be curious to know what regions are driving the decrease and how this generally varies by location. For example, where I live, house prices are up since December 2022 (at least according to Redfin)