Residential Housing Inventory Shortage

From Lennox’s Blog…

We are now experiencing, in most market areas, a shortage of homes available for sale. Favorable market conditions have produced a surge of local home buyers (backlog) on top of the elevated number of residential investors. This combined with fewer homes coming on the market has created a shortage of inventory in the more affordable and mid price ranges and the upper end close to job centers.

Possible Sources of Additional Homes for Sale and How to Optimize Support:

 

1. Sellers with Equity – there has been a major market change

  • Sellers can sell their homes in today’s market
  • OK to buy/sell within same market timing
  • By waiting for higher prices, the next home purchased may also be at a higher price

2. Underwater Sellers – Short Sales

  • Streamline response / acceptance process
  • Pre-approved short sales

3. Resale Condominiums

  • Move up to 70% FHA occupancy ratio

4. Home Price Appreciation – will unlock current “underwater” sellers

  • Appraisal process is restraining the housing recovery

5. New Construction

  • Promote presale product
  • Need streamlining of land development permit process

6. Foreclosures

  • No bulk sales to National investors (market by market analysis)
  • Keep foreclosures available for local home buyers/investors

7. New Condominium Projects

  • Need to overcome construction financing  and take out home buyer financing

8. Apartments converting to condominiums

  • Streamline Process

2012 HOUSING TRENDS

The National real estate market continues to maintain steady growth and appreciation, as evidenced by the latest Case-Shiller Index, which showed steady increases in month over month home prices, across 20 major metropolitan areas. Since the beginning of 2012, the indexes have risen 3.5%, a sign that the bottom of the market may indeed be behind us. What is even more encouraging is the year over year appreciation, as noted by the index, posting the first positive numbers since the end of the home buyer’s tax credit of 2010.

As the housing market gains strength, the inventory of both new and existing homes has dwindled. Motivated buyers are moving off the fence to take advantage of the historically low rates and adjusted prices. Because of this, multiple offer situations have become increasingly common and have intensified the market. The strong sales activity has triggered prices to rise in the more affordable and mid price ranges as well as the higher price ranges near job centers; signaling a flip in the market.

Initiated by the elevated number of residential investors and local home buyers gaining confidence and reentering the market, the Northwest housing market has seen a surge of buyers.

Another market trend we have observed is the increase in the use of mobile technology among both buyers and sellers. The John L. Scott mobile app gives buyers an extra edge when searching for a home and gives sellers targeted exposure to quickly and successfully sell their home.

These indicators show that moving into 2013 we will likely see a continuing of the fundamental strengthening of the local real

February Existing-Homes Sales Slip But Up Strongly From a Year Ago

 Quick Indicators from NAR’s article “February Existing-Homes Sales Slip But Up Strongly From a Year Ago”

– Total existing homes nationwide UP 8.8% higher than Feb 2011   

– “Rising demand for both rental space and homeownership this year” according to Yun

– National median existing-home price for all housing types UP 0.3% from Feb 2011

– Distressed homes DOWN 39% in Feb 2011

– Single Family Homes sales 9.4% higher than a year ago

Click HERE to read the article.