Have All Houses Disappeared?

Where Have All the Houses Disappeared To?

Have all the houses disappeared? If you’re following what’s happening in the current housing market, you’ve seen how the lack of newly constructed homes nationwide is a major reason there’s a shortage of housing inventory available to today’s buyers. Another reason is that the inventory of existing homes for sale is shrinking.

According to the most recent Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 10.8% from the same time last year. That exceeds expectations and is great news. Keep in mind, inventory varies by the area of the country and by neighborhood. If you’re considering buying or selling a home in Southwest Florida, there may be plenty of inventory as season just started.

From a national perspective, the troubling news from the report is that the sold inventory is not being replaced. As NAR explained,

“Total housing inventory at the end of December totaled 1.40 million units, down 14.6% from November and 8.5% from one year ago. Unsold inventory sits at a 3.0-month supply at the current sales pace, down from the 3.7-month figure recorded in both November and December 2018. Unsold inventory totals have dropped for seven consecutive months from year-ago levels, taking a toll on home sales.”

The situation was also addressed in a recent Zillow article stating,

“The number of for-sale homes in the U.S. is at its lowest point in at least seven years, and the shortage appears poised to get worse before it gets better.”

Bill McBride of Calculated Risk further noted,

“Inventory always decreases sharply in December as people take their homes off the market for the holidays. However, based on the data I’ve collected, this was the lowest level for inventory in at least three decades (the previous low was 1.43 million in December 1993).”

Why is inventory falling so dramatically? I thought the housing market had softened.

A year ago, that was the case – but the market shifted again. Skylar Olsen, Director of Economic Research at Zillow, explains,

“A year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back to accelerating growth right as we head into home shopping season with demand outpacing supply.”

What does this mean if you’re a homeowner thinking of selling?

Now is a great time to consider putting your home on the market. The competition (number of houses on the market) has not been this low in decades. It’s best not to wait for the inventory (both existing homes and new construction) to increase in the spring, as it always does.

So, the supply of homes for sale is at a historic low. Buyer demand is surprisingly strong. Now would be a great time to sell.

Naples Real Estate News

Naples Golf Guy Report – NEW!

Luxury Golf Community Trends

Begin Your Own Property Search for Luxury Dream Home in Southwest Florida

The good news is, if you thought all the houses disappeared, that’s a myth if you are considering buying a home in Southwest Florida. Since it is season, many golf communities have plenty of inventory. So, if you’re ready to begin your search for your dream home or condo in Naples, Bonita Springs, Estero or Fort Myers, we encourage you to explore our website to find information about communities in the area. If golf is your game, we specialize in golf community real estate. There are more than 150 different golf communities in our area and most of them have a private golf course within the community. It can be challenging to navigate the plethora of communities, membership options, golf course design, amenities and more. We will help provide you with a list of the top private golf communities which match your lifestyle.

Also, if you are considering new construction, remember the contractor’s real estate agent represents the builder’s best interest, not yours. There is no cost for you to have an agent represent you. In fact, we may be able to help you save money and negotiate for extras which the builder may not let you know about.

Lastly, we will handle all contract negotiations for your property from offer to close!

Bottom Line:

If you’re looking for a focused and results-oriented Realtor in Southwest Florida who will help you achieve your Real Estate needs, please reach out to us directly. Additionally, if you are looking for a golf community expert or you are considering buying or selling a home, a luxury home, vacation home, golf home or dream home, call or text 239-370-0892 or email Matt@NaplesGolfGuy.com