What Andrew Shader Wants Home Buyers to Know About the Current Housing Inventory
Over the past few years, a decrease in available housing inventory has significantly affected home prices. According to Andrew Shader, if you’ve been in the housing market for a while, just waiting for the right time to move into your dream home, that time may be coming now.
Calculated Risk reports that as of November 18, 2022, there were nearly 48% more homes on the market ready to be sold than during the same period in 2021. This is a significant jump, making it clear that the housing market is likely swinging its favor toward the buyer.
If you’ve been waiting for a shift away from a seller’s market to make your move as a buyer, it might be time to do so soon.
Why Did the Housing Inventory Grow over the Past Year?
What changed to make the available inventory of homes increase so dramatically within a year? Usually, when available housing inventory increases, the cause is related to a major increase in homeowners deciding to sell and listing their properties. However, the situation is slightly different this time.
Since November 2021, homes listed for sale have stayed on the market for longer than they normally would. Homes like this are referred to as active listings, and the last year has seen a massive increase in long-standing active listings.
However, these active listings aren’t staying on the market for no reason. Within the past year, home prices and mortgage rates have reached significant highs, making potential home buyers cautious about moving on a purchase.
In fact, most home buyers have been waiting for the mortgage and home price rates to drop, which has led to a decrease in home sales and, therefore, an increase in available inventory.
Heading into the winter months, Andrew Shader projects the housing market will likely see its usual inventory slowdown. However, that doesn’t mean the home inventory increases are over.
There’s still a significantly higher number of homes on the market now than this time last year, and this number is projected to continue rising, even if the winter effect causes it to slow down somewhat.
What It Means for Home Buyers
Even though this increase in home inventory was created by a slightly atypical cause, an increase in the availability of homes is always a good thing for potential buyers, no matter the reason.
The more homes that are for sale, the more options you’ll have as a buyer, giving you ample time to make a careful choice about which home you’d like to invest in. Additionally, when new home availability rates are high, it gives the buyer even more leverage to come to a deal that works for them.
Who Is Andrew Shader?
Real estate investor, developer, and entrepreneur Andrew Shader worked his way up in the insurance industry before realizing his true passion for real estate. Now, he makes it his goal to find the properties with the most value and increase their value even more to create an optimal outcome for all involved.