How Are Falling Inventory Levels Affecting Our Market?

Falling inventory levels and rising interest rates have created a fantastic seller’s market here in the Valley.

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Inventory levels are falling in our area, but what does that mean for home prices?

The Washington Post recently published an article stating that inventory levels nationwide are at the lowest levels they’ve been since 1999, which was when the National Association Realtors first started tracking home sales in the U.S. That’s more than a 17-year low for the number of homes for sale.

However, we see more and more buyers moving into the marketplace because interest rates have been rising since the election. You would think rising interest rates would keep buyers out of the market, but the rates are actually causing a panic. Buyers think if they don’t lock in a low rate right now, they might get priced out of the market.

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It’s a perfect storm out there for sellers.

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Not only do we have new buyers flooding the marketplace and a 17-year low in inventory, but we also have buyers who already own a home but are looking to trade up entering the market. This segment of buyers wants to lock in a lower rate before it gets too high and they get priced out of the home they want to trade up to.

What does this all mean? It means it’s a perfect storm for sellers who want to get their home sold for top dollar.

If you have any questions or you or someone you know is thinking about selling their home, please give me a call and I would love to give you a free home evaluation. I look forward to hearing from you!