No, this is not an 80's movie where the main character creates a machine and shrinks his children, the houses were not shrunk, but gone !!!!
Anyone looking for a house here in Orlando, or anywhere in the United States for that matter, is currently faced with a scenario like the one in the movie where the houses are gone and it seems impossible to find a house to buy.
A year ago before the world was plunged into a health crisis and a pandemic brought the world to a halt the inventory of homes in Orlando was already very low and the shortage of homes for sale in Orlando was clear.
When many homeowners postponed their selling plans, at the same time as more buyers wanted to take advantage of record mortgage rates and buy a home, the housing stock fell even further.
Experts consider this the biggest challenge facing an otherwise heated market as buyers continue to compete for homes. As Danielle Hale, Chief Economist from realtor.com, explains:
"With buyers active in the market and seller participation decreasing, the houses are selling fast and the total number available for sale at any given time continues to fall. At January as a whole, the number of houses for sale dropped to less than 600,000. "
Every month, the realtor.com releases new data which show the year-to-year change in the inventory of existing homes for sale. As you can see from the map below, the national inventory is 42.6% lower than at this time last year, and in Florida the housing inventory reduced by 39.2%.
The reason for this is not that fewer houses are being put on the market for sale
Although there are fewer homes listed at the moment, many homes are simply selling faster than being counted as current inventory.
The market is so competitive, that some homeowners are warning in their house ads that they will wait a week to make their decision to ensure they have the best offers on the table!
It's like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. This is what is happening in the housing market: houses are being listed for sale, but not at a rate that can keep up with the strong demand from competitive buyers.
In the same realtor.com report, Hale explains:
"O time on the market was 10 days faster than last year, which means buyers still need to make decisions quickly to be successful. Today's buyers have many tools to help them do this, including the ability to be notified as soon as homes that meet their search criteria hit the market. By tailoring their search and notifications to homes that are a solid match, buyers can act quickly and compete successfully in this fast-paced real estate market. "
Good news for homeowners and investors
The health crisis has been a major reason why potential sellers have been putting it off for so long, but as vaccines become more widely available, homeowners will begin to act. Ali Wolf, Chief Economist from Zonda, confirms:
"Some people will feel comfortable listing their homes during the first half of 2021. Others will want to wait until the vaccines are widely distributed."
With more homeowners getting ready to sell later this year, putting your home on the market early is the best way to make sure your listing outshines the rest.
When you are ready to sell your home, you will probably want to sell it as quickly as possible, for the best price, and with little or no hassle.
If you are looking for such selling conditions, you will find them in today's market. When demand is high and stock is low, the salespeople have the ability to create optimal terms and deadlines for the sale, making now an exceptional time to change.
Summary
Today's real estate market is a big win for sellers, but these conditions won't last forever. If you are in a position to sell your home now, don't expect your neighbors to do the same. Let's talk about how to sell your house safely so that you can benefit from today's high demand and low stock.
Are you in doubt?
Now that you know that houses have not been shrunk, but that inventory is at very low levels in the United States. We can help you understand the behavior of the real estate market and consider investing in vacation homes in orlando. To take advantage of all the tips we have brought to you and to go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you with any questions you may have about investing in Florida.
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