If you have been watching the number of homes on the market, then you saw the trend: inventory has gone down. In fact the active inventory this month is 25% LOWER than last January. That represents the lowest supply of homes in a long time. Supply has definitely gone down!
See supply for other counties here
Another interesting statistic is the recent increase in demand. There are 30% MORE homes under contract than there were last January! Demand is also going up!
See demand for other counties here
What happens when supply is low and demand is high?
We have the ingredients for a hot market. The last time we saw demand come this close to active inventory was back in 2005. Do you remember what happened then? This was just before the boom. I'm not saying that we'll have another boom, we can't and won't see the skyrocketing prices, but these two statistics show the market has bottomed.
What else bottomed?
Interest rates! With buyers getting close to 3.75% interest rates they are snagging big homes for small payments. The last time interest rates were this low was back in the 1950's. If you wanted to buy a home back then, but waited hoping things would get better, guess what; you would have had to wait 60 YEARS to get rates this low.
With the market bottomed out and incredibly low interest rates, you have to ask yourself one questions: Did you get in on it?
About the Author:
Utah Dave - Daybreak Neighboorhood Expert and Local Resident
My friends nicknamed me Utah Dave in high school because they said it didn't matter where we went in Utah, I would know how to get there and who we needed to talk to. The name sticks today as UtahDave has formed into a professional real estate network of Neighborhood Experts all across the state. I live in Daybreak with my wife and 4 amazing children. I enjoy dancing (which is how I met my wife Dawn) as well as traveling, coaching, and learning.
