Nationwide inventory appeared to have bottomed in early 2013, but experts are predicting that inventory will increase as much as 15% by the end of the calendar year. The increase in inventory is great news for buyers who are looking to buy in 2014 as prices are not expected to increase too substantially. Although inventory declined from 2.11 million in October to 2.09 million in November, inventory was up year-over-year from November 2012.
Inventory is not seasonally adjusted, and usually inventory decreases from the seasonal high in mid-summer to the seasonal lows in December and January as sellers take their homes off the market for the holidays.
Another reason for low inventory is sellers being unable to find homes to buy, forcing them to take their home off the market until the market heats up and inventory increases. With new mortgage rules introduced this month many homeowners will find it easier to list their home.
With market trends and industry experts suggesting inventory will pick up, a more competitive market will exist for buyers and sellers in 2014.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”