What Will It Mean if Housing Inventory Continues to Dwindle

  • 05/29/22

What does a typical day look like? More to the point, what did a typical day look like before the pandemic? It feels like it was ages ago. Thankfully, as more people receive the vaccine, one can only hope that normalcy is coming soon. 

An industry that we’re keeping an eye on is real estate. People are still nervous about entering the market because they’re wary of strangers coming to the house and possibly catching COVID. As we approach summer, we have some insight from top-selling real estate agents regarding the housing market’s future.

Low inventory is a cause for concern among agents.

It’s a highly competitive market right now, and sellers can reap the benefits of increasing prices, more offers, and swift closings. However, 69% of real estate agents are worried because sellers are hesitant about listing their homes. Interestingly, they’re not listing because other people aren’t putting their homes on the market. 

With that said, 35% of real estate agents are optimistic that more people will start listing their homes as we head into summer, and they predict the market will improve as more folks get the vaccine. 

The possibility of permanent remote work could lead to relocation.

Cities are considered a mecca for finding work, surrounding yourself with culture, and having access to everything you could ever hope for in terms of nightlife, shopping, and public transport. Yet, the pandemic has shifted the way employers run their businesses and employees work remotely. It’s predicted that remote work will become a new normal, and as such, workers are considering relocating to other areas.

Suburbs and smaller cities are the new “It” place to be

If people are considering relocating, where are they going? They’re going to smaller cities and the ‘burbs. These communities are highly sought after because they offer a different lifestyle than what city dwellers are used to. As desirable as these places maybe, 98.6% of agents in these areas see so many buyers flooding the market that it’s making it difficult to buy. Some people are going so far as to submit offers above asking. And, of course, the seller will accept the best offer.

Prepare for heated bidding wars as they become more common

When there’s a high demand for something, people will go in hard to get what they want. When buying a house in a seller’s market, they’re putting their best offers on the table from the get-go. They’re skipping the usual contingencies, preceding home inspections, and going in with an offer above asking. 

Yet, real estate agents are still seeing an explosion of bidding wars with all of those things. Since the market is so competitive and prices are skyrocketing, homeownership is becoming less obtainable, and it’s getting to the point where 24% of agents believe being a homeowner would become an “exclusive club” that the Average Joe won’t be part of.

Low inventories aren’t going to last forever.

The future of the real estate market is hard to nail down for sure, but 31% of real estate agents are optimistic that the market will only get better. As more people get vaccinated, 26% of agents believe there will be an increased number of sellers entering the market, and if the interest rates stay as low as they are, there’ll be more buyers, too. 

If you find that you’re in a position where you need to sell your home quickly, this market is an excellent opportunity to do so. Buyers are snatching up houses almost as soon as they come on the market!

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