Exploring the causes of low real estate inventory as spring approaches.
Why is inventory so low? As the spring season approaches, the real estate market usually sees a surge in home listings, making it the most active time of the year. However, this year’s inventory is surprisingly low, leaving many wondering why. Here are three major factors that may have contributed to the low supply:
1. Homeowners don’t want to lose their current rate. Many homeowners who were considering upgrading or downsizing have recently refinanced their homes at lower interest rates in the 2% or 3% range. With the cost of larger homes on the rise, and rates now higher, homeowners are hesitant to give up their current low rates. They find it more financially sensible to stay put, which has contributed to the low inventory levels.
2. There are no other options. Most homeowners who are considering listing are hesitant because there is nothing for them to move into. Therefore, some decide not to list their homes at all.
3. The looming financial fear. Despite data suggesting that the real estate market may not experience a crash, many individuals remain concerned about a looming recession and a possible bubble burst. As a result, they choose to hold on to their current financial situations and refrain from listing their homes.
If you’ve seen any other reasons, I’d love for you to reach out. Also, for any inquiries about the real estate market, don’t hesitate to call or email me. I’m happy to help!