Residential real estate has largely followed the same narrative for the past few years: While there are plenty of buyers shopping around and ready to make a bid, there simply aren’t enough homes on the market.
There are more than 75 million owner-occupied households in the U.S., according to the U.S. Census Bureau. Despite that large number, just a fraction accounts for the homes that go on the market. The National Association of Realtors reports that while the total number of home sales increased in 2017 compared with the previous two years, the amount of inventory decreased – 1.46 million homes were on the market last December, nearly 200,000 fewer homes than in December 2016. The lower number leaves just 3.9 months of inventory, per NAR, while six months of inventory is considered a balanced market.