In their Housing Industry Stock Outlook for October 2017, NASDAQ shared some important data about the current shortage of housing inventory available in both existing homes and new construction.
Regarding Existing Home Inventory:
“Existing home sales declined to a one-year low in August, per the latest report from the National Association of Realtors or NAHB. Existing-home sales slipped 1.7% last month to a seasonally adjusted annual rate of 5.35 million. This marks the fourth decline in five months, bringing the annual rate to the lowest level in 12 months.”
If you are thinking of selling your home anytime in the next year, please contact us today. We can help you prepare your home for sale to get top dollar.
Regarding New Home Inventory:
“Housing starts came in at a seasonally adjusted annual rate of 1.18 million last month. This is 0.8% down from a revised July estimate of 1.19 million. Nevertheless, August construction starts were 1.4% higher year over year. Single-family starts were even stronger, growing 17.1% from a year earlier.”
In other words, total housing inventory declined 10.4% year-over-year to 1.80 million, marking the 27th consecutive month of declines. That’s only a 3.9-month supply, well below the 6 months needed to sustain a normal housing market!
The biggest challenge in today’s market is getting current homeowners and builders to realize the opportunity they have to maximize profit by selling and/or building NOW!