Navigating Low Inventory: Strategies to Combat the Lack of Homes for Sale

Three things that are causing the low inventory and how to combat them.

Many people are worried about the lack of homes for sale. Are you one of those people? The truth is that although inventory may be low, there are a few things you can do to combat the problem.

One reason that there aren’t a lot of homes on the market today is that there haven’t been as many foreclosures. Very few people have lost their homes and forced the banks to get rid of them, which means fewer homes for sale. This is likely because homeowners have a lot of equity and can sell for a profit if needed.

Another factor affecting the low inventory is the lack of new construction. From 2008 to 2018, there was a massive deficit in the number of new-construction homes. Builders weren’t very active during that time, and they still aren’t today. In today’s market, it is hard for builders to buy land and pay for the costs of materials and labor. Even if they can, it is difficult to make a profit. Therefore, builders are sitting on the sidelines, and prices rising means fewer homes for sale.

"Inventory may be low, but there are solutions."

Homes also come on the market the traditional way, when the homeowner decides to sell, but even this method is decreasing. Our market is currently experiencing a mortgage rate lockdown, which means that current homeowners don’t want to give up their great interest rates for today’s higher ones. Plus, home prices are higher, which means it will cost people more money to buy a home. When moving doesn’t make sense for people financially, that decreases the inventory.

However, all of this doesn’t mean that buyers need to lose hope in the real estate market. If you want to buy a home, know that it’s crucial to work with an agent who has the skills to win a multiple-offer situation and has access to off-market properties. These things will help you get through this tough time.

If you’re thinking about selling, know that now is a great time to do so. Home prices are rising and the market is strong, which means that you can sell for more. Also, if you’re worried about finding a place to go after you sell, know that I have creative solutions to help with that. 

If you need help buying or selling, or just have questions about navigating this low-inventory environment, don’t hesitate to reach out. You can call or email me anytime, I’d love to talk to you.