The Truth About The Housing Inventory Crisis.

Table of Contents

• Current State of Housing Inventory:

• What This Means for Utah:

• Regional Differences:

• Influence of Mortgage Rates:

• Looking Ahead:

Current State of Housing Inventory:

There’s a bit of good news on the horizon—housing inventory is up by 23.5% compared to last year. We’re seeing more homes available, which is a refreshing change. However, we're still not back to the bustling market we saw before the pandemic; we're about 37.7% shy of those numbers. It’s better, but there’s still room for improvement.

What This Means for Utah:

This increase means the market is starting to balance out a bit more, which could mean new opportunities for buyers and sellers. For buyers, more inventory might mean less competition and better pricing. For sellers, while the market isn’t as tight as it has been, well-priced homes in good locations are still moving quickly.

Regional Differences:

The impact varies widely depending on where you are. Some areas, like Hartford, Conn., are still seeing tight inventory and rising prices. Other areas are experiencing a surge in listings, which might lead to price adjustments soon. For example, Spanish Fork has seen a 42% year-over-year increase in homes for sale, with the average home sale price coming down -12%. However, Payson has seen a 7% increase in the average sale price over the past year, with just 28% more homes for sale. Remember, these are averages for entire zip codes, but these regional trends can greatly influence your strategy whether you're buying or selling.

Influence of Mortgage Rates:

High mortgage rates have been a major plot twist lately, making many homeowners hesitate to sell. They’re locked into low-rate mortgages and aren’t eager to jump into a higher rate with a new home, which has kept many potential listings off the market. This 'lock-in effect' is significant but it's starting to ease as people adjust to the new normal or decide to move on for other reasons, like needing more space or relocating for jobs.

Looking Ahead:

As the market continues to adjust to these dynamics, and as people start overcoming their hesitations related to mortgage rates, we expect to see further increases in listings. This gradual return to normalcy will open up more possibilities for buyers and sellers alike.

If you're pondering your next steps in this evolving market, or if you just want to chat about potential opportunities, I’m here to help. Understanding these trends can really give you an edge in making informed decisions.

Talk soon!

Best,