As the housing market continues to work its way through a refashioned landscape in the wake of the pandemic, real estate agents are left wondering if the low inventory levels they’ve been dealing with will ever return to pre-COVID levels. The issues of fragmenting supply, the movement away from urban areas, and the surging interest in the suburbs have all combined to limit the number of homes for sale.
According to the article, the supply of homes for sale has reached its lowest level since the height of the housing boom in 2006. This has made it difficult for agents to provide their clients with the number of choices they’re seeking. Despite a jump in demand that began shortly after reopening the economy in May of 2020, the inventory levels have yet to return to pre-pandemic norms.
The disparity between the level of demand and the meager supply is attributed to a variety of factors. These include the preference of homeowners to remain put and the tendency of consumers to shift away from dense urban regions towards more suburban locations.
In order to assess the impact of the current situation, experts are recommending that real estate agents focus on market-specific analysis, running supply-and-demand analysis to assess price thresholds and affordability levels, and compare results to last year’s numbers. In addition, they are also advised to utilize technology to keep up with the dynamic situation and remain informed on up-to-date inventory availability.
Real estate agents are facing a unique challenge, as they wait to see if existing inventory levels will grow enough to match the current level of demand in the housing market. In the midst of what continues to be an ever-changing landscape, experts are urging agents to analyze data on a local level and to use new technology to monitor the situation to best serve their clients and increase the number of options available.
You can read this full article at: https://www.housingwire.com/articles/real-estate-agents-wonder-if-inventory-levels-will-ever-return-to-normal/(subscription required)
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