Home Inventory: How Low Can We Go?

Patience may be paying off for homeowners who’ve postponed putting their homes on the market until this year. Current housing inventory levels are at their lowest levels since 2004 for the month of January. When inventory remains limited, Sellers are usually able to ask for higher prices.

Not only have listings been limited, but at the same time mortgage rates have been rising a bit. This in turn, creates a sense of urgency among Buyers, many of whom fear that the door to affordable real estate in their market may be starting to close.

The National Association of Realtors reported housing inventory fell 9.3% at the end of December, to 1.86 million available homes, which is about a 4.6 month supply at the current sales pace.

[The median sale price of single family homes in Rhode Island was up 8 percent in December, but sales fell by 2 percent from the same period a year.  

The statistics released Wednesday by the Rhode Island Association of Realtors also show a drop in the number of house sales that were distressed. Twenty percent of December’s single-family house sales were short sales or foreclosures, while the distressed rate was 27 percent a year ago. ] Read more from the Providence Journal…

Ultimately, most experts agree that the key indicator for the long term housing market will be relative to what is happening with jobs - and whether there is enough of a pickup to offset the rising interest rates. But for the short term, before the competition heats up, Sellers may want to consider getting on board.

If you have questions about listing your Rhode Island home, or to find out what your home is worth today, send an email to JMVeegh@cox.net or give me a ring at 401-847-8818.

All the best!

Jeannie Veegh
East Shore Properties