Falling inventory forces homebuyers to move at fastest pace ever!
Housing inventory fell 8.9% from last year in the second quarter of 2017, sending homebuyers scurrying to beat the rising competition.
Housing inventory dropped for nine consecutive quarters, and is currently down a full 20% from inventory levels five years ago, a new report from Trulia shows. And now, homebuyers are snatching up homes at the fastest pace since Trulia began tracking in 2012. While 57% of homes were still on the market after two months in 2012, today that number shrank down to 47%.The chart below shows the relationship between housing inventory and the amount of time homes stay on the market.
Competition is so fierce, in fact, that 33% of Americans who bought a home in the last year made an offer without even seeing the home in person, according to a survey from Redfin, an online real estate brokerage.
This is up from 19% of buyers who placed an offer on a home without seeing it first last year. Among Millennials, even more placed offers without seeing the home in person — a full 41%.
And while that survey showed affordable housing was the most prevalent economic concern, only 5% of homebuyers said they would cancel their home-buying plans if rates surpass 5%.
As supply continues to dwindle, a new report from the National Association of Realtorsshowed pending home sales dropped for the third consecutive month, possibly a sign that low housing supply is beginning to curb demand.
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