As inventory lags, it may take time for buyers to find their ‘perfect home’
Though analysts are starting to see growth in household formation and first-time buyers entering the market, the supply of homes for sale is lagging, Realtor.com Chief Economist Jonathan Smoke reports.
“New construction in January did not increase,” Smoke writes. Meanwhile, the number of existing homes for sale is getting tighter as demand increases, which means homes will be on the market for fewer days and prices will increase.
In a tight-supply scenario, Smoke advises buyers to hurry up, start their search, and be prepared to buy – “just don’t expect to find that perfect home immediately.”