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Effects of Low Inventory

August 16, 2012 |  Article By :   | 

The effects of low inventory in the housing market are helping turn things around.  Inventory has been down for some time now and is helping to spur on the housing market.  Some of the effects are:

  • Days on the market until a sale are decreasing.
  • Prices are slowly starting to rise mainly because of multiple offers with the low inventory.
  • Some sellers that were borderline underwater on their mortgage are now getting above water and will be able to sell without a short sale.
  • Sellers that were just waiting for the market to hit bottom are now considering selling their homes which will add to the inventory.
  • There are less foreclosures and short sales on the market to drive prices down.

So while some buyers may not like the price increases taking place with the depleted home inventory, it is a positive step in helping the market recover.

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