The number of single-family home rentals has increased by 6.2 million since 2005, one of the reasons why inventory remains low
By Jeff Sorg, OnlineEd Blog
(June 26, 2017)
Zillow® is reporting that the number of for-sale homes coming onto the market is dropping at its fastest pace in almost four years, according to their May Zillow® Real Estate Market Reports. Homes are staying on the market for the fewest days Zillow ever reported.
Across the country, home shoppers will have 9 percent fewer homes to choose from than a year ago, which is the greatest drop in inventory since August 2013 when inventory was down over 10 per cent. Homes are staying on the market for just 77 days.
The median home value across the country is $199,200, up 7.4 percent since this time last year. Seattle, Dallas and Tampa, Fla. reported the highest year-over-year home value appreciation among the 35 largest U.S. metros. In Seattle, home values rose almost 13 percent to a median value of $440,100. Home values in Dallas and Tampa are up about 11 percent since this time last year.
“On the demand side, simple demographic change is contributing to incredibly high demand as Millennials reach their prime home-buying years and begin to enter the market in droves. This is coupled with relatively low levels of new home construction on the supply side insufficient to keep pace with demand, and what is built is largely priced beyond the reach of many of the first-time and entry-level home buyers in the market. Thousands of single-family homes that were once bought and sold every few years prior to the recession have now been converted into rental properties by investors, trading hands much less frequently and further contributing to inventory shortages. And finally, in some still hard-hit markets, negative equity is likely keeping many homeowners of lower-end homes from listing their home for sale because they can’t afford to profitably do so. There is no silver bullet that will clear the market of all of these issues, and buyers frustrated by the status quo will likely have to remain patient and be ready to pounce once that perfect home does become available,” said Zillow Chief Economist Dr. Svenja Gudell.
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