Noah Springer is an experienced real estate professional in Franklin, Massachusetts. Before entering the professional arena, Noah Springer graduated summa cum laude from Kaplan University with a bachelor’s degree in psychology with a focus in applied behavioral analysis.
According to Realtor.com’s chief economist, Jonathan Smoke, demand for new homes is on the increase—especially in the Midwest. Demand is so high, in fact, that even with 2 percent inventory growth in March, the housing supply simply can’t keep up. Of course, the greater demand for inventory creates a lucrative market for sellers, who now face the enviable prospect of being in more multiple-offer situations.
The typical inventory cycle for a home is six months in a balanced market. For the last four years, however, new homes coming on the market have decreased by 35 percent, and the inventory cycle has dropped to an average of 4.4 months. Both those trends strongly favor sellers.
What’s good for the seller isn’t good for the buyer, though. In particular, the inventory of available starter homes on the market, which are typically the most affordable homes for new and lower-income home buyers, has sharply decreased. As a result, buyers face the difficult task of competing with one another for the increasingly limited amount of inventory on the market.
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