U.S. Housing Inventory Declines for First Time in a Year

This article comes from https://news.move.com/ that talks about the housing stock being down first time this year. I personally think a lot of it has to do with the interest rates and less medium priced homes on the market.

""The state of the housing market as we head into the latter half of 2019 is a tug of war between increased affordability and economic anxiety. We're starting to see this tension play out in our August data," said George Ratiu, senior economist for realtor.com®. "On the one hand, lower interest rates have given buyers more purchasing power, which is contributing to August's decline in national inventory. However, concerns over trade wars and cutbacks in corporate spending are causing some buyers to postpone their search. This is contributing to both the slow down in prices, as well as the inventory decline, as buyers stay put in their current homes.""

Spending was up last month with consumers and I think it will be a bullish housing market for some years to come. We simply do not have the bad loans that where the major part of our 2008 downturn. I personally purchase around 60-100 homes a year for clients, and 95% of them are cash. There many other home buyers using their IRA to finance real estate and do not use banks.

Mortgages are still being done, but the borrower has to be qualified under must stricter guidelines. Foreclosures are down 15% Click here to view. That is a great sign of a strong and robust real estate market. Interest rates are extremely low right now also enticing home buyers to look at mortgages again.   

The only areas that are being effected are the higher priced real estate. Baby boomers are downsizing and retiring or getting ready to. The high end real estate in places like New York city is also being effected. The tax policies in the state and local areas are effecting potential buyers. Sellers are selling cheaper and getting out. 

""According to Ratiu: "These strong but opposing forces make it more difficult to predict what will happen in the second half of this year. If the headwinds of economic uncertainty intensify, it could prompt a decrease in buyer demand and shift housing inventory's current trajectory. But if increased purchasing power prevails, we could see even more inventory declines and intensified competition between buyers.""

There where virtually no mid priced homes built for 10 years 2006-2016. The over regulation did not allow builders to make money on mid priced homes. Higher priced homes where built during that time and that is why the inventory crunch. You can probably remember the new subdivisions putting fences up and stopping construction during those 10 years.

Medium priced housing will continue to have inventory issues for sometime to come. The free market will catch up, but it will take some time to get there. The good news is I can still find them for my clients. Need Home or Homes call me 

I'm Brett Icon Agent at EXP Realty, I have purchased 100's of homes for my clients and I can get yours also. Call 216-703-5740 or Text information to 1-937-500-0745  

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