How Low Inventory Could Affect the Housing Market This Fall

How Low Inventory Could Affect the Housing Market This Fall

Published On: September 22nd, 2020Last Updated: September 21st, 2020Categories: Business, Flipping, Investing, Investment Properties, Real Estate, TipsTags: , , , , , , , , , ,

How Low Inventory Could Affect the Housing Market This Fall

Buyers are actively hunting for and purchasing homes to take advantage of the current historically-low mortgage interest rates. Problem is, there aren’t enough houses for sale to meet the increasing demand. It’s a good place to be if you plan to list your flip this fall.

According to Keeping Current Matters, a resource that provides housing market insights to real estate agents, Chief Economist Sam Khater of Freddie Mac said a late-summer economic slump was the impetus for such low rates: “Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery…These low rates have ignited robust purchase demand activity.”

In order to have a balanced housing market, where there are enough homes for sale to meet buyer demand, the market needs enough inventory for 6 months. Currently, according to the National Association of Realtors (NAR), there is supply for only 3 months. House hunters are snapping up homes faster than they’re being listed and driving up prices in the process.

A report on the Housing Market Recovery Index published by’s Director of Economic Research Javier Vivas earlier this month on the company’s website, explains the inventory shortfall.

“The post-pandemic period has brought a record number of homebuyers back into the market, but it’s also failed to bring a consistent number of sellers back,” he wrote. “Homes are selling faster, and sales are still on an upward trend, but rapidly disappearing inventory also means more home shoppers are being priced out.”

An article published late last month on NAR’s website reported that, on average, REALTORS received nearly three offers per sold property in July 2020—up from about two offers just one year ago—which led to an increase in bidding wars.

All in all, as a flipper, this fall presents a great opportunity to sell your property on terms that are most favorable to you.

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