According to Zillow.com, real estate inventory remains low in the US housing market nationwide. With such a significant shortage in inventory and such high demand; homes are becoming more difficult to come by for many first-time buyers. Low inventory continues to be a collective frustration in the real estate market, specifically in the affordable price bracket. According to Zillow Real Estate Market Reports, the inventory constraints on the affordable side of the market make it particularly tough for entry level buyers. Buyers are not finding ample options, while the costs of affordable homes continue to rise.
Reports indicate that in addition to the low numbers of affordable homes for sale, home buyers with traditional financing are still competing with all cash buyers in today’s market. According to Zillow, “more than one third of all sales of the lowest-priced homes were made with cash.” In cities such as Tampa Bay, Miami, and Detroit, more than eighty percent of all home sales in the affordable price bracket were cash transactions.
On the bright side, the increase in home prices has helped to boost an impressive surge in builder confidence. CNBC News cites a monthly sentiment from the National Association of Home Builders reached an all time high in the month of July. This is the highest level builder confidence has been since January, which is great news for buyers in the real estate market. David Crowe, Chief Economist of the NAHB notes that builders across the country have been expressing a positive outlook on current sales conditions. The amount of consumer traffic is more than builders nationwide have seen in the last five years. Stuart Hoffman, Chief Economist at PNC Financial Services Group suspects that although inventory is low, the increase in home prices will eventually bring more homes into the market. Prospective sellers will gain confidence to sell their homes, which will satisfy the growing demand of buyers.
Despite low inventory conditions in the real estate market, 2014 is still a great year to purchase a home in Tampa Bay. The National Association of Realtors has named Tampa one of 10 housing markets it believes will see a housing turnaround. Take advantage of these positive market conditions, and see what Tampa Bay has to offer. SI Real Estate serves clients both locally and internationally. With over 40 years of experience, and extensive knowledge of the Tampa Bay area; SI Real Estate is here to answer any of your real estate questions, and assist you with any of your real estate needs. Call us today at 813.631.5144.