Found 2 blog entries tagged as low inventory.

As we enter the last month of the year, you may be wondering what state the housing market is in and where it's headed. The answer is simple: look to the economic principle of supply and demand.

Housing inventory is low, which means prices are trending upwards. A scarce supply equals higher demand, which drives up sale prices. Consumers are willing to pay more for what they want- and considering interest rates are currently at an all-time low, they want to buy as soon as possible. This lack of inventory and desire to buy now is also leading home seekers to engage in bidding wars, which is another factor driving up price points. 

As a result of the present-day market landscape, experts from Zillow, Zelman, NAR, Freddie Mac, and others project that…

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Despite uncertainty created by the current health climate over the last few months, economists have noted a distinct pattern in the housing market: instead of slowing down, it is actually booming. According to Bank of America, mortgage purchase applications have risen drastically and are currently clocking in above pre-lockdown levels. Keep reading for the five explanations for this surge in market activity. 

  1. The Disproportionate Recession: State lockdowns and stay-at-home orders affected lower income populations more dramatically than higher income brackets- and research shows that lower income groups are less likely to be homeowners. 
  2. Interest Rates Are at an All-Time Low: Last week, interest rates plunged to a new historic low. Compared to…

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