Prediction: When Will a Flood of Inventory Hit the Market?

For this week’s topic, I want to reference an article we recently found in Market Insider: it interviews the CEO of Compass Real Estate, which is a big national firm. He said something that I’ve been hearing in other places, but there was one point that stood out to me.

Prediction for Real Estate Inventory

He believes that we will get a “flood” of inventory if we see rates get down to the 5 – 5.5% range. That’s a number that we’ve been seeing from different experts. So, it’s not surprising.

The other thing that I thought was important is a number that I hadn’t quantified before. He said that 80% of mortgaged real estate out there right now has a rate under 4%. So, it’s got everyone locked up.

Logically, it makes sense to anyone looking at it objectively. If a homeowner has a 2 or 3 at the front of their interest rate, why would they want to buy another place with a high 6 or 7% rate? It’s a difficult jump!

When Will the Market Change?

The question of WHEN this will happen is the unknown. We wish we had a crystal ball to see into the future! I don’t know what to expect. If I’m honest, I thought that rates would be back into that range by now, but that’s not turning out how I’d anticipated.

I think it’s noteworthy to see another expert agree with the idea that when we get to the point where rates are coming down, it will be a likely opportunity for a bunch of sellers to jump into the market. At the same time, it will also create a flood of buyers. It’s likely we will see the market take off at that point.

It’s Possible to Buy a Home Right Now

In the meantime: buyers, you need to do what’s necessary to get into a home while you can. Inventory is low, but it’s still possible. Talk to us if you need help with making it happen, such as a quick close or a shortened contingency, or something like that. We are doing a lot of different things to help our buyers look as attractive as possible in a highly competitive market.