Why 2017 Could be a Challenging Year For Real Estate?
According to the last report from the National Association of Realtors (NAR) year-over year sales were down in almost every regions including the Las Vegas area (-1.0%). Gloom and doomers are already marching the streets with their megaphones predicting another real estate crash. Is this real?
Yes prices have risen and interest rates are inching up but this is not the cause of the slow down in sales. Housing supply is the problem. As illustrated in this graph from NAR, year-over-year housing supply was under last year’s levels every single months between -1.1% and -10.1%. This indicates the demand is strong but the supply is not keeping up. Buyers are looking for homes but there aren’t simply enough to meet the demand!
Even when breaking the housing supply into categories it is easy to see that starter homes and trade up homes are not the only category affected by the drying supply! But they are the most affected: -12.1% and -12.9%. This is enormous!
What does that mean to you? You are in front of a golden opportunity where the lack of inventory forces a strong pool of buyers to compete for the same homes for sale. What that really means is we are now in a seller’s market where getting your price, in your time frame and your terms is easier than ever. If you’ve been on the fence about selling your home, now is a good time to get a hold of us and plan your move. If you are still hesitating buying a home, now is a good time to get into the market as we don’t see this trend changing soon and interest rates increasing lower your buying power.
Eric Auger, Entrepreneur, Innovator and Realtor. If you enjoyed this content and are ready to take the next step, you can find out how much your house is worth in minutes here or you can start your home search using the fastest listing notifiation system in the industry here. (faster than Zillow, Realtor dot com and Trulia)