How Today's Inventory Proves the Market Isn't Crashing
If you owned a home in 2008 or not, you probably recall the crash that took the housing market by storm. Today's News about a shifting market is most likely causing hitting a bringing back those feelings of uncertainty. Those feelings are understandable! However, checking the data can help reassure that today's situation is nothing like it was in 2008.
Though we may be seeing a shift, one key reason we won't see a crash is the current undersupply of inventory in the real estate market. Housing supply comes from three key places:
- Homeowners currently putting their homes on the market
- New home construction
- Distressed properties, such as short sales or foreclosures
While the Charlotte real estate market is seeing an increase in housing supply this year, that number is still limited. The graph helps illustrate the inventory level this year compared to the same week last year up 27.8% (in blue). However, compared to the same week in 2019, inventory levels are still down by 42.6% (illustrated by the larger red bar).
What does all this mean? Housing Inventory is still at a historic low and there are simply not enough homes for sale to cause home prices to crash. The data and stats support a shift to a healthier market!
If you have any questions about buying or selling strategies in this market, please just let us know! We are happy to guide you in managing your biggest asset, your home!
source: keepingcurrentmatters.com