Housing Inventory – Rising?

bubble1Interesting article out of Southern California recently.

They’re looking for housing inventories to rise. And it some cases it looks like it’s already starting to happen.

One person wrote from San Diego:

“Lots of houses are coming on the market now where I live in San Diego. The most I’ve seen in years but they are all listed at the highest prices I’ve seen since the crash. The prices are not dropping one bit either, but nobody is buying them anymore. They just sit on the market for a few weeks then the seller removes them.”

I find this interesting because California is often times the canary in the coal mine. That is, stuff happens first there and moves east.

From the piece:

“There has been a distinct momentum shift that has come from two major events in the mortgage markets. The first had to do with FHA insured loans becoming incredibly expensive even though these products are targeted as options for working families. As if a working class family is really in the market for a $729,750 property (the FHA max in high priced markets). That is one event.

The second larger event has to do with the Fed hinting at a QE taper which sent the mortgage markets into a tizzy. This has definitely tempered the nearly unrelenting real estate mania that has been gripping the country. Incredibly, even after the quick turnaround in prices 14 percent of US homeowners with a mortgage are still underwater.

Banks have leveraged a low supply market coupled with selective disposal of properties to their advantage. However, with inventory now rising thanks to the quick turnaround you are seeing some brakes being applied to this market.

Personally I’m all in favor of rising inventories, because that will bring prices down, which helps everyone who is buying rental properties.

What’s your take?

You can find the article here:

http://www.doctorhousingbubble.com/real-estate-trend-shift-inventory-bottom-interest-rates-negative-equity

 

 

Dennis is an active real estate investor based in Metro Detroit.

In addition to his day job, at present he holds a portfolio of rental houses and he's an active wholesaler who has closed deals in real estate markets throughout the country.

He's also a published author of a book on rental house investing called "How to Buy Your First Set and Forget Rental House", and has trained over 1000 new real estate investors on how to get started with real estate.

You can reach him directly at dennis at dennisfassett dot com

Please note: I reserve the right to delete comments that are offensive or off-topic.

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4 thoughts on “Housing Inventory – Rising?

  1. I concur. The prices are high. Nice time to be a Seller in some markets. But it appears to be changing and for Buyers, it clearly would be beneficial to have more inventory on the market.

  2. It’s really strange out there Robert. The properties in my area have increased in price 100% in the last 22 months.

    And there are still vacant houses that went into foreclosure years ago that still aren’t on the market.

    I’m still buying, but I’ve tightened my criteria and I’ve narrowed my focus on neighborhoods.