A recent report from Zillow reads that housing inventories continue to decline as supply can’t keep up with demand. After a weak recovery in inventories earlier in the year, the situation has gotten worse as for-sale inventory tumbled in September. The numbers show that there were 112,112 fewer homes on the market across the nation in September than in September 2018, a 6.4% decline. The bottom line is there is a need for more new construction or existing homes for sale for the housing market to be healthy and stable.
There are many contributing factors to the lack of new listings. The major constraint is the availability of construction labor. More people have been working in this sector according to the most recent jobs report. This may turn around the lack of construction of new homes in many parts of our nation. We will have to wait to see what happens at the beginning of 2020.
The good news is: people are ready to buy and refinance their mortgage. More people in the Millennial generation are now able to afford to buy a home. And, due to low interest rates, many mortgage holders are able to refinance and save hundreds of dollars every month. The housing market is a bright spot in our economy right now.