Despite the economic instability caused by the ongoing effects of the coronavirus pandemic, the US housing market remains remarkably healthy. This is largely due to the historically low inventory of homes for sale that shows no signs of improving, even as demand for these properties increases.
The number of homes for sale is currently at a historic low as Americans face reduced incentives to sell, thanks to low mortgage rates, as well as limited relocation opportunities since many employers have placed a moratorium on moves of all kinds. Additionally, it has become more difficult for people to sell their homes, as the necessary steps of the selling process – such as open houses, home appraisals, and home inspections – take longer than usual due to the need for extra health and safety precautions.
This wave of historically low inventory and high demand for homes is having a positive effect on the housing market, however. Home prices, which had declined over the past few years, are beginning to rise, which benefits existing homeowners as they can now fetch higher returns when they do decide to sell. Additionally, buyers in the market now have access to more attractive options compared to previous years, as they are able to purchase homes that they would not have been able to afford before.
The tenuous status of the housing market caused by ongoing pandemic-related uncertainty is making sellers, buyers, and investors wary of the future. Nevertheless, it appears that demand for properties is still able to keep up with current home inventories. As long as this trend continues, the US housing market should remain in a healthy state for some time to come.
You can read this full article at: https://www.housingwire.com/articles/housing-inventory-still-near-record-lows/(subscription required)
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