Austin and greater central Texas is experiencing a nice real estate recovery. News of a 20 percent decrease in inventory, is a welcome change from recent years. Although Austin never suffered from the same precipitous drop in values as other regions of the country, we did see a substantial increase available homes.
What Does Lower Inventory Mean?
Real estate inventory is often measured, to determine the healthiness of a given market. When supply far exceeds demand, there are two results. The options for buyers increase greatly. And competition among sellers is fierce. While this is a good thing for buyers, it does create several problems. Excessive supply can cause buyers to be stagnant, since they have an almost overwheling amount of choices. Contrary to conventional wisdom, low, or lower inventory often causes buyers to not have a sense of urgency.
A 20 percent decrease inventory does not get us to the boom times of years bygone. But this substantial decrease in inventory leads to a word that economist and consumers like- stability. With a 32 percent increase in sales from this time last year, combined with a 20 percent decrease in inventory, a real estate recovery looks to be in the cards for Austin and greater central Texas.
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