How is inventory in your market?

Buying & Selling Real Estate
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How is inventory in your market?

Johnny QuilenderinoPro Member
Real Estate Agent · Slidell, LA · Member since 2017 · 207 posts · 267 votes

DC inventory is at all time historic lows. I expect the inventory to slowly creep up, as interest rates race to back to above 3 percent. Deals are being made in the condo markets, but absolutely shredded in the single family home market. The last offer I placed for a SFR lost out to 53 other offers.

DC metro inventory would have to stop selling inventory for 10 months to get back to "buyers" market. We have .4 months of "good" inventory on the market, anything that stays longer than 14 days, there is something wrong with it and we can at cut at least 10-20k off the price to start the negotiation. 

How low is the inventory where you guys are looking to invest, or buy your first home? 

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Ruth Lyons
Investor · Colorado Springs · Member since 2016 · 232 posts · 150 votes
5y

This housing inventory shortage is unprecedented in the real estate housing market. An agent in Maryland, I’m working with several buyers who are very frustrated trying to find a home. As seems to be the case across the country, homes that hit the market sell in a few days with multiple offers pushing the price past asking.

There seem to be a lot of contributing factor, many pandemic related:

  • - Employee uncertainty of what “work from home” will look like in 6 months are reluctant to consider selling. At the same time, more buyers are coming to the market looking for homes with amenities more conducive to working from home like less open space, a home office, etc.
  • - Sellers who want to move see very limited choices on the market and decide not to sell (where will they move to?).
  • - Baby-boomers and the elderly hold a lot of the would-be homes for sale and many are reluctant to move or fearful of having showings during the pandemic. And the elderly are increasingly unlikely to make the move into assisted living facilities and nursing homes as long as pandemic restrictions are in force.
  • - Mortgage forbearance government mandates have restricted the flow of homes to market. Foreclosures that would have been available never made it to market.
  • - The cost of construction materials has been rapidly and steadily increasing since the pandemic hit constricting new homes being built and put on the market. Without new homes to move into, many would be sellers can’t find what they want on the market.

Some factors aren’t directly related to the pandemic:

  • - Historically low interest rates have driven up demand --- with buyers flooding the market -- while squelching supply as many would be sellers simply refinanced and decided to stay put.
  • - Available inventory of homes was already trending down before the pandemic hit. Pandemic factors contributed to the downward slide.
  • - The construction industry has a shortage of workers, having never fully recovered from the 2008 housing crash which pushed construction workers into other jobs. At the same time, stricter immigration policies have led to fewer available workers who typically fill these jobs.
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  • Jared McCullough
    Member since 2019 · 122 posts · 44 votes
    5y

    Wish I would have bought more last year and in 2019 is all I can say.... 

    I have closed on (3) already this year but certainly weren't the deals I have been getting in 2019 and early 2020. They meet my basic criteria but I can't help but shake my head knowing I am paying more than I would like to be comparative to last year.

    Even the depressed areas which normally have pages of active MLS listings it is now usually filled with pending houses. I am beginning to look at areas I once would have never considered.


    If you are actively trying to build a portfolio unfortunately you can't just sit a year out but let's all hope things adjust. It seems like there are so many more people in the game lately too which I think is part of the problem as well. 

    1Reply
  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Johnny Quilenderino

    Tulsa has a lot of the same issues although anything north of say $300k or $400k tends to sit a bit longer historically speaking just due to the median home price being closer to $200k historically. (Saw a 20% jump this past year however) Anything mid $200’s or less is flying off the shelf.

    Finding investments for my investor buyers is beginning to feel like finding a Unicorn that farts fireballs. $20k over asking on something that was a good deal last week and didn’t even hear back and found out it was pending.

    I’m an agent and I know the off-market wholesaler world is increasingly scrutinized but I see it’s validity in increasing measures for investors. It’s been mistakenly assumed wholesaling has to be an assignment but to me it is simple sourcing investment opportunities via direct to seller marketing; and the exit can be assignment but also could be taken down, etc. In my opinion, that is just about the only way to ensure being involved early in the real investment opportunities out there.

    1Reply
  • Ruth Lyons
    Investor · Colorado Springs · Member since 2016 · 232 posts · 150 votes
    5y

    This housing inventory shortage is unprecedented in the real estate housing market. An agent in Maryland, I’m working with several buyers who are very frustrated trying to find a home. As seems to be the case across the country, homes that hit the market sell in a few days with multiple offers pushing the price past asking.

    There seem to be a lot of contributing factor, many pandemic related:

    • - Employee uncertainty of what “work from home” will look like in 6 months are reluctant to consider selling. At the same time, more buyers are coming to the market looking for homes with amenities more conducive to working from home like less open space, a home office, etc.
    • - Sellers who want to move see very limited choices on the market and decide not to sell (where will they move to?).
    • - Baby-boomers and the elderly hold a lot of the would-be homes for sale and many are reluctant to move or fearful of having showings during the pandemic. And the elderly are increasingly unlikely to make the move into assisted living facilities and nursing homes as long as pandemic restrictions are in force.
    • - Mortgage forbearance government mandates have restricted the flow of homes to market. Foreclosures that would have been available never made it to market.
    • - The cost of construction materials has been rapidly and steadily increasing since the pandemic hit constricting new homes being built and put on the market. Without new homes to move into, many would be sellers can’t find what they want on the market.

    Some factors aren’t directly related to the pandemic:

    • - Historically low interest rates have driven up demand --- with buyers flooding the market -- while squelching supply as many would be sellers simply refinanced and decided to stay put.
    • - Available inventory of homes was already trending down before the pandemic hit. Pandemic factors contributed to the downward slide.
    • - The construction industry has a shortage of workers, having never fully recovered from the 2008 housing crash which pushed construction workers into other jobs. At the same time, stricter immigration policies have led to fewer available workers who typically fill these jobs.
    5Reply
  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    5y

    We listed one of our rentals yesterday and have been told to expect an offer this morning.  One showing, one offer.  

    We have another showing today so I am hoping for multiple bidders.

    1Reply
  • Lorin MonesBusiness Member
    Realtor · DC MD, VA · Member since 2017 · 20 posts · 8 votes
    5y

    @Johnny Quilenderino

    I’m also in DC and MD. It’s brutal. Even out to Bowie, MD it competitive.

    [email protected]202-494-0110
    1Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    In the words of the future poet laureate, of the Banks family, from the tribe of G-Unit, “it’s on fire, up on here, burning hot, we on fire.”

    4Reply
  • Allen Wu
    Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    5y

    @Johnny Quilenderino

    NE Los Angeles. Low inventory. Tough!

    1Reply
  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    5y

    So we are waiting for the full offer but the buyer is offering 20k over asking, with no concessions.  Now we just need to see if there are contingencies....

    1Reply
  • Stuart Baxter
    Harlingen, TX · Member since 2016 · 2 posts · 2 votes
    5y

    Spokane, Washington has had an inventory shortage for about 3 years now. Most single families sell for well above asking price.

    2Reply
  • Nate Burket
    Contractor · Knoxville, TN · Member since 2017 · 4 posts · 1 vote
    5y

    @Evan Polaski What markets do you focus on in Cincy? I grew up in Mason and live in Knoxville now.

    1Reply
  • Heidi Dunn
    Realtor · Indian River, MI · Member since 2015 · 16 posts · 6 votes
    5y

    Even Northern Michigan has low inventory. It has been a sellers market for a few years now. Almost every listing on the MLS is under contract, except for the highest price ranges, and even those are moving, just not as fast.

    I would love to get into building new homes, but between a trades labor shortage, lumber prices and the lack of availability for some materials it becomes cost prohibitive.

    1Reply
  • A. Bryce Davis
    Realtor · Fort Worth · Member since 2020 · 33 posts · 17 votes
    5y

    Was low in Jan, Feb....but now it is starting to get better and I'm guessing it'll soon explode!

    Dallas-Fort Worth

    0Reply
  • Fred Cannon
    Rental Property Investor · St Augustine, FL · Member since 2019 · 264 posts · 279 votes
    5y

    @Johnny Quilenderino. Everything is under contract or pending. If you listen to the news it's gloom and doom but in Florida we are experiencing a real estate boom. Unfortunately not good for investors, I'm on the sideline but watching.

    0Reply
  • Brandon Thomas
    Real Estate Agent · Frederick, MD · Member since 2020 · 60 posts · 28 votes
    5y

    What inventory? 

    LOL.

    2Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    5y

    @Nate Burket, I prefer the areas around where I live in Pleasant Ridge, so older, walkable, east side neighborhoods.

    0Reply
  • Justin Cousins-Lee
    Member since 2020 · 12 posts · 10 votes
    5y

    North Carolina is insane right now 

    1Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    5y

    @Johnny Quilenderino Austin, Tx is well below 1/2 month of inventory. Closed sales from last week averaged 32% higher than one year ago. Talk about appreciation! Extremely hard for buyers to purchase unless they are extremely-well financed.

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5110 Reviews
    WebsiteView Page
    1Reply
  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    5y

    Our Phoenix listing sold in one day.

    1Reply
  • Jonathan Mueller
    Real Estate Agent · Park City, UT · Member since 2016 · 113 posts · 112 votes
    5y

    @Johnny Quilenderino

    Inventory?!? What Inventory?!?! Made 3 offers last week and each of them had at least 10 offers, one had 26 offers. We came in 50k over asking on all of them and didn't get any of them. These were in the 500k range

    1Reply
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