The US Housing Inventory Crisis: A Deep Dive into Declining Numbers

Wednesday, June 21, 2023   /   by Fahad Karamat

The US Housing Inventory Crisis: A Deep Dive into Declining Numbers

The US housing market is in the throes of an unprecedented inventory crisis, the likes of which haven't been seen in over a decade. Homebuyers and sellers must brace for impact as these shifts could redefine the housing landscape.

Pandemic's Grip on Housing

COVID-19 has reshaped the housing narrative. With 2.2 million homes up for grabs in May 2019, today's scenario - 1.4 million - shows the depth of the pandemic's blow. The volatility from the health crisis deterred many from putting their homes on the market, leading to a drastic inventory plummet.

Mortgage Rates: A Double-Edged Sword

The buying spree of 2020 and 2021, fueled by historically low mortgage rates, ended up exhausting the already strained housing stock. But as rates rose, topping 6.43% this May, homeowners clung to their prized lower rates, further shrinking the available inventory.

A Mirage of Stability in Housing Prices

Despite the inventory and rate challenges, housing prices are holding steady. The delicate dance between limited supply and unwavering demand has kept prices from taking a nosedive. Still, the slight dip from the previous year's high underscores the market's fragility.

The Geographical Divide

While nationwide figures tell a tale, zooming into individual cities reveals stark contrasts. Regions like Austin and Boise, once hotspots for skyrocketing prices, are now cooling off. Conversely, more affordable locales like Hartford and Rochester are witnessing a surge as homebuyers hunt for value.

Peering into the Future

Predicting the market's next moves is a challenging endeavor. While Redfin's Chief Economist, Daryl Fairweather, warns against premature conclusions, looming mortgage rate hikes by the Federal Reserve could suppress demand and induce slight price downticks. Yet, the specter of the 2008 crash's sharp decline seems distant.

Navigating the choppy waters of today's housing market demands vigilance, adaptability, and resilience. Both sellers and buyers must align their strategies with real-time market shifts to weather this inventory storm. This era may be challenging, but it also offers opportunities for those equipped with the right insights and strategies.

  real estate, buyers market, buying a home, forecast

California Platinum Realty
Fahad Karamat
6303 Owensmouth Ave 10th Floor
Los Angeles, CA 91367
CA DRE # 02007521
NMLS # 1597279

LaCountyHomeListings and California Platinum Loans Partnership Logo.png

Based on information from the Golden Empire MLS, Inc./Association of REALTORS® as of February 21, 2024. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Information deemed reliable, but not guaranteed. Copyright Golden Empire MLS, Inc. 2021.
Based on information from California Regional Multiple Listing Service, Inc. as of February 21, 2024. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
This site powered by CINC: