Low Inventory Poses a Challenge to Real Estate

mtg-ratesI wanted to repost this interest Blog by KCM regarding the current low inventory the market is experiencing.

As written by KCM BLog:

The real estate market is in the midst of a major comeback. Sales are greater than any time since 2007. Consumer confidence is increasing. Economists are now saying housing is the major tailwind to our nation’s overall economic recovery.

However, there is one major challenge that could stall the housing market: a lack of inventory.

According to the National Association of Realtors (NAR) latest Existing Home Sales Report:

“Total housing inventory at the end of December fell 8.5 percent to 1.82 million existing homes available for sale, which represents a 4.4-month supply at the current sales pace, down from 4.8 months in November, and is the lowest housing supply since May of 2005 when it was 4.3 months, which was near the peak of the housing boom.

Listed inventory is 21.6 percent below a year ago when there was a 6.4-month supply. Raw unsold inventory is at the lowest level since January 2001 when there were 1.78 million homes on the market.”

A recent survey by Redfin reveals that the challenge seems to be continuing into 2013. New listings taken in the first 14 days of the year decreased by 30% as compared to the first two weeks of 2012.

Call the Reed Real Estate Group at 888.675.REED (7333), or email us. We have been placing buyers and sellers of Hilton Head Island SC real estate for almost three decades. We strive for top-notch customer service – from Hilton Head gated communities, villas and plantation homes to Hilton Head golf communities and ocean-front property – the Reed Real Estate Group is your Hilton Head Island real estate agency.

Posted by Susan King, Marketing & Listing Coordinator for REED Real Estate Group.

 

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