2014…..Below was originally written March 2013. Compared to the inventory crunch we are currently under this is another under-statement! As they say, “never catch a falling knife”! This one flew up so fast hardly anyone would’ve predicted the surge in demand and drop in inventory. It hasn’t been seen in our market place since 2001.
March 2013…..Considering the most recent changes in our local real estate market leaves a REALTOR wondering where all the inventory went? Seriously there are less than 1 months of housing inventory in a few of areas and less than 3 in almost all! Thats truly amazing considering the state of the market 3 years ago. It’s inevitable that the prices will continue to have upward pressure so long as this continues.
Extremely low interest rates (in the 3% range) are a major contributing factor to the appeal of buying a home, but theimproving economy is really the driver. Confidence in the future has gained momentum, particularly with young people, and I see that as a significant improvement. Remember, rates have been at all time lows for several years now.
It appears that the economy is improving in many other locations both around Texas and other states (even world wide). In Texas we’ve much to be thankful for with our energy related natural resources, oil and gas, which has been a major contributor through the lean time. I read that Houston market is the tops for home sales with the lowest days on market.
Once the builders get back on track it’ll lessen the impact, but not on so much with those properties that are not surrounded by raw land prime for development.
Right now its all about a lack of available good inventory. Buyers are having to move quickly, and in many situations sellers are working with multiple offers including those over the listed price. Hang on to your hat!