Is a shrinking inventory of for-sale listings a good thing or a bad thing? It’s a simple enough question . . . with a complicated enough answer. But it’s something that everyone in the real estate industry from up and down the ladder will have to come face to face with for the rest of the year. So let’s think about it together for a minute
Let’s hear the facts first. (Yeah, I know that’s a concept that’s lost on most people these days, but bear with me and I promise I’ll throw in some wild speculation and accusations in just a bit!) According to Zillow, overall inventory listings are down. Way down! 12.2% year over year. That’s some steep tumbling. And it’s pretty much across the board to every community should be a seeing a noticeable decrease in for sale signs.
So now for the speculation – what does it all mean? Who is this good for and who is this bad for?
– Does the limited supply which drives up prices mean serious profits for investors? Isn’t that what got this rotten economy in the trash in the first place?
– Does the limited supply mean a hard time for agents and short sale pros? Where will we look for our next target?
– And who’s to blame for the shrinking inventory? Consider that the biggest tumble, 15.7%, came from top-tier properties aimed at the rich. Is this good for those wealthy trying to cash in just a bit more?
I’m not going to give you all the easy answers, if there even are any. Just leave your thoughts here and decide for yourself. I’m sure you’ve got an opinion so express yourself.