This report is for the nation with our take on the Georgia market. Nationally, it’s the first month for MANY that we have an increase in inventory. But let’s not count on that. Sometimes you have to track progress to ensure it’s not a blip. Let us help you monitor the local market so you can time your purchase or sale just right.
Again, this is national. Total housing inventory at the end of June climbed 4.3 percent to 1.95 million existing homes available for sale, and is 0.5 percent above a year ago (1.94 million) – the first year-over-year increase since June 2015. Unsold inventory is at a 4.3-month supply at the current sales pace (4.2 months a year ago). .5 percent is nothing to throw a party over, but let’s see how it goes over the next couple of months.
The chart below is another way to look at the same information.
Look what continues to happen here. With the lack of lower price inventory, those prices continue to increase. Battles and multiple offers continue to wear out buyers and the sellers are reaping the benefits. High price homes are the inventory level increasing the most and it’s also why the prices aren’t increasing as fast – more inventory, less competition. With interest rate changes, people with multiple homes are also opting more to sell off vacation homes, downsize or just simplify their lives.
“The lean supply of homes for sale is leading to higher sales prices and fewer days on the market, and the supply shortage is more acute for entry-level homes.” – Dr. Frank Nothaft, CoreLogic’s Chief Economist
You’ve probably figured this out, but two factors motivate the over 25-40 group to purchase a home. You want that stability. Can you relate to these statistics? It’s terrible to have to uproot your family due to increased rents, or the landlord sells the property, or moves back in. Purchasing a home eliminates that factor. The key is to buy at a price that allows you to breathe easy each month knowing you can handle the payment, rather than holding your breath as to where the money will come from.
We know that job transfers and other family issues come up, but once you purchase, you can relax and begin to be part of the community. We disagree with this quote from Mark Fleming – at least for our local market. “Millennials are often referred to as a ‘renter generation,’ because they have prioritized furthering their education and thus delayed getting married and having children, which are critical lifestyle triggers to buying a first home,” said Mark Fleming, chief economist at First American.
Now, if we could just get more inventory for all of you, we’d get closer to matching the actual homeownership rate (about 68% in Georgia) vs. potential homeownership demand (about 74% in Georgia). We need to get more homes for you!
How can we help? We are immersed in the local market and are happy to guide you, offer inside advice after going through dozens of real estate cycles over decades. Draw from our experience. Contact us today.