Why You Should Care that Home Inventory Just Hit a Record Low

If you’ve been paying attention to the real estate market at all over the last year, you’ve heard this a million times: supply is low and demand is high. AKA there are way more buyers than there are sellers. That’s why we’ve been in an extreme seller’s market for awhile now.

However, home inventory just hit a record low in December 2021. December is typically a slower month in real estate, however, December’s supply of inventory hit the lowest number since 1999. That’s according to the latest Existing Home Sales Report from the National Association of Realtors (NAR).

Key takeaways from NAR’s report:

• At the end of December, the inventory of unsold existing homes in the U.S. fell to an all-time low of 910,000, which is equivalent to 1.8 months of the monthly sales pace, also an all-time low since January 1999.

• That’s down 18% from November 2021 and down 14.2% from a year ago when the number was 1.06 million units.

  
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Philadelphia Inventory Levels:

• The above numbers are for the entire country. In Philadelphia specifically, we are also seeing record low inventory levels.

• Philadelphia Housing Market expert Kevin Gillen said that home inventory is not likely to rise anytime soon. According to Bright MLS, the number of homes that went on the market in the Greater Philadelphia Area in December 2021 was down 6.2%. Meanwhile, the median sales price went up 9% to $305,000.

• For more details on that, check out our Philadelphia 2022 Housing Market Predictions Blog.

Why Sellers Should Care:

This is a Once in a Lifetime Opportunity for Sellers

Buyer demand is very high. NAR reports that 6.18 million homes were sold in 2021. That’s the highest number of sales in 15 years since 2006. When demand is high and supply is low, that gives seller’s a big advantage.

This is truly a once in a lifetime opportunities for sellers. Here’s why:

• You have maximum leverage during negotiations

• You will receive competitive offers that could include high sales price, flexible closing dates, potential leaseback to allow you time to find another home, and minimal contingencies

• The demand is at an all time high so there is not shortage of buyers

• You’re sitting on record high levels of equity

• Demand is not expected to weaken this year, but this won’t last forever - home inventory levels will eventually go back up and you might miss out on the opportunity to get top dollar

This means it is a perfect time to sell! Contact us to start the conversation about how much your home could be worth. We have incredible real estate agents ready to help you navigate the process.

Why Buyers Should Care:

Interest Rates are Still Low & Having a Great Realtor is Crucial

Although inventory is low, that does not mean that it’s not a good time to buy. Interest rates are still at all time lows, which means it’s a great time to buy as well. You just need the right guidance to help you through the process.

Here’s what we recommend:

• Work with a real estate agent who has the knowledge and experience to make your offer stand out.

• Work with a great lender to get preapproved and take advantage of the low interest rates.

• Choose a realtor that knows the Philadelphia market like the back of their hand. They might even know of off market properties that aren’t available to the public.

• Our agents have proven to help their clients’ offer get accepted without being the highest bid and not having to give up all contingencies. It is still possible, but having the right agent is key.

Current Homes on the Market:

If you’re interested in buying or selling in the Greater Philadelphia area, please contact us. We can help you navigate the market and find your dream home!

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Venture Philly Group

Buy. Sell. Invest.

info@venturephilly.com

o. 215.592.9522

604 S Washington Square, Philadelphia, PA

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