U.S. Housing Market Has a Split Personality
๐๐ก๐ ๐ก๐จ๐ฎ๐ฌ๐ข๐ง๐ ๐ฆ๐๐ซ๐ค๐๐ญ ๐ข๐ฌ ๐๐ฑ๐ฉ๐๐ซ๐ข๐๐ง๐๐ข๐ง๐ ๐ ๐ฆ๐๐ฃ๐จ๐ซ ๐ฌ๐ก๐ข๐๐ญ, ๐๐ฎ๐ญ ๐ข๐ญ'๐ฌ ๐ง๐จ๐ญ ๐ก๐๐ฉ๐ฉ๐๐ง๐ข๐ง๐ ๐๐ช๐ฎ๐๐ฅ๐ฅ๐ฒ.
Headlines were pounding the idea, and still are, that there is a housing shortage.
Take a look at what's happened to housing inventory since October 2019.
Some of the country's largest real estate markets have now moved well beyond their pre-pandemic inventory levels.
Look at the maps and consider these numbers:
Washington: +49.3%
Arizona: +49.2%
Colorado: +40.4%
Utah: +34.7%
Texas: +32.0%
Florida: +13.6%
Georgia: +10.8%
Texas, Florida, Arizona, and Georgia alone represent enormous housing markets. They're also states where construction, real estate investment, and housing-related economic activity play significant roles.
And now, available-for-sale inventory in many of these markets is substantially higher than it was before the pandemic.
Meanwhile, other parts of the country are experiencing an entirely different reality:
Illinois: -57.7%
North Dakota: -38.5%
Wisconsin: -29.9%
Michigan: -26.9%
New Jersey: -46.1%
Two very different housing markets. Two very different supply environments. There isn't a U.S. housing market. And this is precisely why national housing statistics can be misleading.
Increasing inventory + declining affordability + weakening buyer demand = a very different negotiating environment.
For buyers and investors willing to look beyond the asking price, that can create opportunities that simply weren't available a few years ago.
The market is changing. If you're a new investor looking for that mythical "right time", the future is now. All the bad news you're reading about is good news. There are opportunities the likes of which we haven't seen in years.
You don't always need a pile of cash, perfect credit, or a mortgage from a bank to make a deal happen. You just need to know how to put a deal together.
Lease options, seller financing, assignments, and wraps are back on the table.
Source: / U.S. Census Bureau. Active listing inventory change, October 2019โ2026. See map.
