Housing inventory is LOW! But what does this actually mean?

First, let’s be clear that inventory is not low. LISTED inventory is low. There are plenty of houses that exist but just not enough homeowners actively listing their homes for sale. (Know someone thinking of selling? I’m happy to connect with them whether they are local or far away and be a resource)

A lot of market experts like to casually throw around industry-specific acronyms. And the real estate world is notorious for this. Somehow, the average consumer is supposed to know what these stand for and, more importantly, what they actually mean. One market indicator that’s often mentioned is MSI.

Month’s Supply Inventory or MSIrepresents how many months it would take to sell the current inventory of homes, based on a historical average.

When this number is high, the housing market favors buyers. When this number is low, it favors sellers. As much as we love and cherish our homes, we must remember houses are a commodity. It’s all about supply and demand. Guess which way the market is leaning? You guessed it...SELLERS! This means multiple offer situations and missing out on a house or 2 are common. Check out MSI for our entire Chicago and suburbs MLS (the OG source for all listings by realtors). I think a picture is worth a thousand words, right? Check out what happened after April and May.

I should include the caveat that we are speaking in generalities. Are their homes currently for sale that are not selling? YES. But homes in certain locations that are priced right, look good and are in the lower price points are selling like hotcakes. Especially under $300,000. What’s the takeaway?

If you know someone thinking of selling, there is an excellent opportunity to maximize their profits. Please let me know and I’d be happy to connect to help give them trusted information about their home’s values. That way, they can make an informed decision to stay put or make a move.

If you know someone thinking of buying, the good news is there is a golden opportunity for homeownership right now when we do find the right home. Mortgage rates are the lowest in history. That means you get to lock in a fixed monthly payment for the same house you may have spent $72,000 more for a couple years ago (1% difference in monthly payment could mean saving $200/month. That’s $2,400/year and $72,000 over the life of the loan...NOT including the interest you would have paid.)

If we are currently working together to find a home,keep the faith. I sound like a broken record because I say it often, but things will work out how they are supposed to. Maybe the owners of that right home just aren’t quite ready to sell. Just know that you are not alone in the hunt. I’m not afraid to knock on doors or send personal notes to a specific house or neighborhood that you love. We can be proactive and create our own inventory! Just let me know when you see a home or neighborhood that you think you’d really love and we will make it happen.

Yours to count on for all things real estate and beyond,
Jessica