• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pacific Funding Group

Your Professional Mortgage Resource

Talk to a loan expert today.
Call (866) 631-2130
better business bureau A rating

Top 100 Mortgage Lender Badge

Follow Us On Facebook

  • Home
  • About
    • PFG Careers
  • Loan Programs
  • Apply Now
  • Divisions
    • Builder Division – New Home Financing
    • CU Lending Division
  • PFG Blog
  • Contact
  • Do Not Sell My Information

Homes for Sale Are Rapidly Disappearing

November 17, 2020 By Pacific Funding Group

Homes for Sale Are Rapidly Disappearing | Simplifying The Market

Through all the challenges of 2020, the real estate market has done very well, and purchasers are continuing to take advantage of historically low mortgage rates. Realtor Magazine just explained :

“While winter may be typically a slow season in real estate, economists predict it isn’t likely to happen this year…Low inventories combined with high demand due to record-low mortgage rates is sending buyers to the market in a flurry.”

However, one challenge for the housing industry heading into this winter is the dwindling number of homes available for sale. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), recently said :

“There is no shortage of hopeful, potential buyers, but inventory is historically low.”

In addition, Danielle Hale, Chief Economist for realtor.com, notes :

“Fewer new sellers coming to market while a greater than usual number of buyers continue to search for a home causes inventory to continue to evaporate.”

One major indicator the industry uses to measure housing supply is the months’ supply of inventory. According to NAR :

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”

Historically, six months of supply is considered a normal real estate market. Going into the pandemic, inventory was already well below this mark. As the year progressed, the supply has was reduced even further. Here is a graph showing this measurement over the last year:Homes for Sale Are Rapidly Disappearing | Simplifying The Market

What does this mean if you’re a buyer?

Be patient during your home search. It may take time to find a home you love. Once you do, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and understand how the shortage in inventory has led to more bidding wars . Calculate just how far you’re willing to go to secure a home if you truly love it.

What does this mean if you’re a seller?

Realize that, in some ways, you’re in the driver’s seat . When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to ask for more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Do not be unreasonable, but understand you probably have the upper hand.

Bottom Line

The housing market will remain strong throughout the winter and heading into the spring. Know what that means for you, whether you’re buying, selling, or doing both.

Filed Under: PFG Blog

Primary Sidebar

Prequalify for A Loan Today!

Complete this form and get prequalified for a loan in 2 minutes!
  • By clicking the "Get My Free Quote!" button, I acknowledge that I agree to receive a phone call from 1 Loan Specialist at Pacific Funding Group at the number provided. Consent is not a condition in order to qualify for a loan. Your information will never be shared with any third party. Ever. 128 bit Encryption.

Footer

Antioch CA Location

Pacific Funding Group
5123 Lone Tree Way
Antioch, CA 94531
T: (925) 634-6700
F: (925) 240-6000

Alamo CA Location

Pacific Funding Group
3189 Danville Blvd. Ste 225
Alamo, CA 94507
T: (925) 634-6700
F: (925) 240-6000

Stockton CA Location

Pacific Funding Group
343 E Main Street, Suite 904
Stockton, CA 95202
T: (925) 634-6700
F: (925) 240-6000

Loan Programs

  • Home Mortgage Loans
  • Loans For Our Heroes
  • FHA Loans
  • Home Loans
  • Reverse Mortgage Loan

Home | About | Calculators | Loan Programs | Mortgage FAQs | Fair Lending Statement | Apply Now | Loan Lock Form

Copyright © 2021 · All Rights Reserved · Privacy Policy · Pacific Funding Group · Site by Clifton Creative Web

Equal Housing Opportunity Lender. Not a commitment to lend. Rates and programs are subject to change. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.

equal housing opportunity logo