Just catching up on some reading I was doing last week. First up was an article on the News & Observer website “Triangle home sales up 28 percent as inventory levels keep dropping”
The interesting thing they don’t mention is the influx of cash investors to the market. That is a significant reason for the very quick decrease in property supply levels. These companies swoop in and buy 50-100 homes, then leave to another market. That can affect the under $250k home levels very quickly. Another item they fail to mention, is that when they ask why more sellers don’t put their home on the market is because if they do, and it sells, where are they going to buy??? They’ve noted how low the inventory levels are, so before sellers put their home on the market, they start to look for what they are going to buy. If there aren’t that many to choose from, they may decide to stay put. Many sellers have decided to downsize and have more disposable income since 2008, so I think some sellers are scared to sell, then buy again, presumably a bigger/more expensive home.
What do you think?