25 May Shortage of Homes For Sale…Explained.
Here on the Seacoast, we are experiencing low inventories of homes for sale, similar to what is happening nationwide. Portsmouth currently has 86 homes on the market, Kittery has 38, York has 155, Ogunquit has 39, to name a few examples. There are plenty of prospective buyers, who are able and willing to buy and are circling the waters this spring and summer, searching for a home to buy. Freddic Mac has highlighted these 4 reasons for low inventory nationally, and we see all of these culprits here on the Seacoast as well:
- Fear: Property values continue to grow, but wage growth isn’t growing at the same rate. Potential sellers are staying put, for fear that they won’t be able to afford a new home, as well as not find one that they like (with inventories so low).
- Mortgage rate increases: Potential sellers don’t want to lose their current lower mortgage interest rate. Selling would mean a new mortgage with a new higher mortgage interest rate.
- Rising home prices: While home prices are rising, many homeowners still have not recovered fully from their purchase 10 years ago. Selling would mean not covering their current mortgage.
- Disappointing housing starts in 2017: The first few months of 2017 have been disappointing with the low inventory of houses on the market and new homes being constructed. Freddic Mac says that there won’t be enough homes to cover the need this year. As of February, there were 1.28 million housing starts recorded (new homes being constructed) and demand leveling around 1.7 million by the year’s end, it is predicted.
With current market conditions, sellers who don’t fall into the first 3 categories are at a major advantage. If you are thinking of listing your home, contact us today!
**4 reasons above cited from Freddic Mac and not from Aland Realty.