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Low Inventory Causes Home Prices to Maintain Fast Growth

 

Low Inventory

The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price Report last week. The report revealed that severely lacking inventory across the country drained sales growth and kept home prices rising at a steady clip in nearly all metro areas. Home prices rose 5.3% over the last quarter across all metros.

Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report:

“Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability conditions.”

What this means to sellers

Rising prices are a homeowner’s best friend. As reported by the Washington Post in a recent article post:

“The rise in median sales prices has made current homeowners much more willing to sell their home, and that willingness is one of the main drivers behind the inventory that does make it on to the market. While it hasn’t been enough to meet demand, it has made the situation much better, compared with even three or four years ago.”

What this means to buyers

In a market where prices are rising, buyers should take into account the cost of waiting. Obviously, they will pay more for the same house later this year or next year. However, as Construction Dive reported, the amount of cash needed to purchase that home will also increase.

“These factors have created a situation where the market keeps moving the goalposts in terms of the down payment necessary for first-time homebuyers to get into a home.”

The only challenge to today’s market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is only a 4.2-month supply of inventory, which is down from 4.5 months one year ago.

Bottom Line

If you’re thinking of selling and moving down, waiting might make sense. If you are a first-time buyer or a seller thinking of moving up, waiting probably doesn’t make sense.

 
198 Results Price (high to low)
22
$2,490,000 For Sale
5075 Crain Highway
La Plata, MD 20646
2 beds, 1 full, 1 partial baths | Single Family Home
950 sq ft; lot: 16.87 acres
30
$699,900 Under Contract
6586 Ellenwood Drive
La Plata, MD 20646
6 beds, 6 baths | Single Family Home
6,655 sq ft; lot: 8.75 acres
30
$690,000 For Sale
6080 Simms Drive
La Plata, MD 20646
6 beds, 4 baths | Single Family Home
lot: 2.01 acres
30
$674,900 For Sale
208 Morgans Ridge Court
La Plata, MD 20646
5 beds, 3 full, 2 partial baths | Single Family Home
5,838 sq ft; lot: 4.18 acres
30
$650,000 For Sale
4920 Cloverdale Court
La Plata, MD 20646
5 beds, 3 full, 1 partial baths | Single Family Home
5,050 sq ft; lot: 2.35 acres
30
$630,000 For Sale
11670 Gilbert Lane
La Plata, MD 20646
6 beds, 3 full, 1 partial baths | Single Family Home
5,268 sq ft; lot: 3.01 acres
30
$619,400 For Sale
11655 Gilbert Lane
La Plata, MD 20646
5 beds, 4 full, 1 partial baths | Single Family Home
6,920 sq ft; lot: 3 acres
29
$599,900 For Sale
6150 Kerrick Drive
La Plata, MD 20646
4 beds, 2 full, 1 partial baths | Single Family Home
lot: 1.65 acres
30
$599,900 Under Contract
8785 Hill Spring Drive
La Plata, MD 20646
5 beds, 4 baths | Single Family Home
4,052 sq ft; lot: 1.24 acres
30
$599,900 For Sale
1421 Leicester Drive
La Plata, MD 20646
7 beds, 6 full, 1 partial baths | Single Family Home
7,382 sq ft; lot: 0.79 acres
3
$587,950 For Sale
9335 Stonestreet Road
La Plata, MD 20646
5 beds, 4 baths | Single Family Home
lot: 3.75 acres
25
$584,900 For Sale
68 Steeplechase Drive
La Plata, MD 20646
3 beds, 3 baths | Single Family Home
7,286 sq ft; lot: 4356 sq ft
30
$575,000 Under Contract
11506 Summerton Court
La Plata, MD 20646
4 beds, 4 full, 1 partial baths | Single Family Home
4,825 sq ft; lot: 3.6 acres
30
$565,000 For Sale
11466 Stoneboro Court
La Plata, MD 20646
4 beds, 4 full, 1 partial baths | Single Family Home
5,839 sq ft; lot: 3 acres
30
$549,900 New For Sale
8830 Darley Drive
La Plata, MD 20646
7 beds, 4 full, 1 partial baths | Single Family Home
6,620 sq ft; lot: 3.05 acres
26
$544,900 For Sale
6732 Gold Rush Court
La Plata, MD 20646
5 beds, 4 baths | Single Family Home
lot: 1.31 acres
26
$536,000 Under Contract
1005 Maiden Grass Drive
La Plata, MD 20646
4 beds, 3 full, 1 partial baths | Single Family Home
lot: 14375 sq ft
29
$524,900 New Active Under Contract
8350 Ardene Lane
La Plata, MD 20646
4 beds, 2 full, 1 partial baths | Single Family Home
lot: 6.04 acres
19
$523,000 For Sale
9356 Stonestreet Road
La Plata, MD 20646
4 beds, 2 full, 1 partial baths | Single Family Home
lot: 3 acres
16
$519,950 Active Under Contract
11533 Highland Farm Court
La Plata, MD 20646
5 beds, 4 full, 1 partial baths | Single Family Home
5,509 sq ft; lot: 1.22 acres

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Carlos Gautier
White Plains, MD 20695
301-399-3519
carlosagautier@yahoo.com

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