The housing crunch has turned a corner in the last few months. In September 2018, Realtor.com reported that inventories for homes are leveling out.
For last few years, demand has significantly outstripped inventories. This meant that home prices have been consistently rising and selling a home was extremely easy. In September, Realtor.com reported that inventory declined just 0.2 percent with an 8% growth in new listings.
Buyers have been hoping for a large selection of homes and for more control over home prices, and this change in inventory to amounts may signal the beginning of a buyer's market. September showed a year-over-year increase of 7%, but this contrasts with a 10% year-over-year increase from the year before.
Single-family homes declined just 1% in September, but condominium and townhouse inventories rose by 3 percent. The forty-five largest markets showed a 5.6 percent increase over last year.
What it all means
For buyers and sellers, this can all have a huge effect.
Sellers may find that selling their home in the next few months will become increasingly difficult. More inventory means more choices for buyers. It will also mean that prices are at or near peak for the foreseeable future. Now is the time to list and sell a house. The seller's market appears to have peaked.
Buyers might find it useful to wait a few months. Prices may level off or even drop and there should be a marked increase in inventories. More choices make it easier to find the perfect house and save money.