Saturday, July 30, 2016

It's Not About Housing Inventory

Here is still another story about local (Cincinnati area) home sales and median prices going up over recent weeks, which, of course, is a big positive.

However, it's the quote about how "the market would be better if there was more inventory" that appears in this story, as well as many others like it from around the country.

The more homes available in a given community, the more likely it becomes that sellers need to lower the price in order to get their home sold. Lower sale prices usually do more harm than good.

When home prices rise, it tells potential buyers that the value of the home they are considering has a strong chance of increasing over the years.

There are still millions of homes with underwater mortgages that were wrongly damaged by the foreclosure boom over the past 10 years. Give them a chance to recover their losses!

Having fewer listings selling for more money is the ideal solution.

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