Are Shrinking Inventories a Good Thing?

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

This morning I was listening to the Business news.  They had a short blurb on the current Real Estate market. They indicated that prices have been rising for 63 straight months while inventories have been shrinking for over 2 years, I think it was. Will shrinking inventories and rising prices cause a problem for the short and/or long term? KCM seems to believe we are still in a bull market for sales

 

Rising Home Prices Mean Great News for Homeowners

Rising Home Prices Mean Great News for Homeowners

Recently there has been a lot of talk about home prices and if they are accelerating too quickly. As we mentioned before, in some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers who are out looking for homes, which has caused prices to rise.

The great news about rising prices, however, is that according to CoreLogic’s Homeowner Equity Report, the average American household gained over $14,000 in equity over the course of the last year, largely due to home value increases.

The map below was created using the same report from CoreLogic and shows the average equity gain per mortgaged home during the 1st quarter of 2017 (the latest data available).

Rising Home Prices Mean Great News for Homeowners | Keeping Current Matters

For those who are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new-found equity in their homes and themselves, not in depreciating assets.

The added equity is helping families put their children through college, invest in starting small businesses, pay off their mortgages sooner and even move up to the home that will better suit their needs now.

Bottom Line

If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, contact an agent in your area to discuss your options!

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

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Topic:
Real Estate Market Trends
Location:
Massachusetts
Groups:
FOR SALE BY OWNER - MARKETING(FSBO)
Boston Real Estate
New Hampshire - Real Estate and Life in The Granite State!
MA REALTORS
Boston Area Real Estate
Tags:
inventory
real estate prices

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Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I think it is the low inventory and strong amount of buyers that are driving prices up. But the rate of increase is slow, it is not massive like 2003-5. I see many home owners not wanting to change not knowing where they would or can go as there is no homes to move to. Those that do take the step Doug Dawes do find their next dream home. I have a steady flow of new listings, many sell in days when priced right. Other sellers think they can get a huge amount over value, and those homes sit until the price goes down to where it should have been to start. I dont forsee a crash unless they ever stop giving mortgages  

Jul 26, 2017 02:43 PM #1
Rainmaker
775,405
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Scott Godzyk 

I think you have hit the nail squarely. The market will still move forward maybe just at a slower pace, BUT if prices keep going up and banks accept the appraisals many will be priced out of the market even with low interest rates

Jul 26, 2017 09:27 PM #2
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Rainmaker
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Doug Dawes

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