Aspiring home buyers have long known about the maddening lack of homes on the market. And despite the strong economy that’s propelling more and more people into the home-buying market, the lack of inventory is crimping existing home sales.
- We know that 2017, as a whole, was a record year, boasting the most existing homes sold since the boom year of 2006, more than a decade ago. The inventory of homes on the market is at its lowest level in two decades; and consequently, the pool of interested buyers at the end of the year significantly outweighed what was available for sale.
- If inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners.
However, rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers.