Most of us now believe the housing crisis is over and we are well on our way to a full recovery. Average home prices are up, and the number of foreclosures and short sales has dropped to the lowest level seen in years. Most real estate professionals believe the housing market will continue to get stronger throughout 2019.
Sounds Good So Far, Doesn’t It?
While this is certainly good news or at least it should be, there is one small problem that many of us seem to have forgotten. One that may put the brakes on what is otherwise a very welcome improvement in the market. This is simply the lack of available houses on the market and with summer just around the corner buyer demand is sure to increase (it does so every summer), supply is expected to continue coming up short.
The market needs a steady increase in the supply of available houses if prices are going to remain within the realms of affordability. The only way a sustained growth in housing sales is for housing appreciation to continue growing at approximately the same rate as wages. To go along with this, there needs to be a solid increase in the availability of lower end properties, It may also be necessary for price cuts for those properties at the upper end of the spectrum.
Heading into Spring
As we head into spring, housing prices in the U.S. are expected to continue increasing. At the same time housing inventory is also expected to increase, but at a slower pace than we have seen over the course of the past few months. Part of this is because fewer of those with homes to sell are willing to deal with the current conditions which are more challenging than we have seen in recent years.
For those in the market to buy a new house, their buying experience is likely to be different depending on what the current market is like in the area they are planning to make a purchase and the price point they are willing to work within. Those who are in the market for lower-end properties are still likely to find that locating affordable properties will continue to be challenging.
At the same time, those looking for homes in the mid-price point range are likely to find more houses available but can still expect to pay more. At the upper end of the market, we can expect prices to drop slightly as the demand for homes in this bracket are becoming harder to sell with a dwindling market for them.
For Those Planning to Sell
However, this is good news for those who are considering putting their homes up for sale. With the market expected to remain at this status, demand for available houses is expected to continue increasing with so little competition. Not only does this mean you shouldn’t have any trouble finding buyers who are interested in your property, but that you should be able to sell it for an excellent price.