Andrew Shader Explains: Is the Number of Homes Being Sold on the Rise? invites voices to its platform by sharing their opinion that matters most. Opinion expressed by VIP contributors don't reflect the opinion of Vizaca or its employees.

Andrew Shader Explains

Price appreciation is at an all-time high, thanks to the shortage of available housing inventory. In fact, the past two years have witnessed double-digit appreciation. Bidding wars have become commonplace in sales for available homes.

In the following article, Andrew Shader, Fort Lauderdale real estate investor and developer, explains that an essential measure of the real estate market is the number of homes that are available for sale.

There is good news, though. The number of active listings throughout the nation’s housing market has gone up since May of 2021. An active listing is any property that is for sale, excluding those that are in a “pending” status.

Annual Trends for Property Listings

Historically, housing inventory increases in the spring and throughout the summer months. It begins to decline in the fall and drops sharply during the winter. However, 2020 saw a different trend. Inventory held relatively steady throughout the spring, then peaked in April just slightly.

From there, the number of active listings declined month after month through the end of the year. Therefore, 2021 began with a record-low inventory, and it has been building since then as more listings joined the market.

Three Main Reasons for Increased Listings

There are many reasons why inventory will likely continue to increase through the fall and winter of 2021:

  • New construction is picking back up
  • Hesitant sellers will become ready to sell
  • The forbearance program is ending

Andrew Shader advises that if you’re considering buying a home, stick with your plan. As inventory increases, home prices will come down.

New Construction Is Picking Back Up

Many construction projects had been put on hold during the past year when the price of lumber skyrocketed and remained at record levels for several months.

As more new homes are built, home buyers are going to enjoy having more options to consider. This applies to sellers, too. A lack of inventory slows many potential sellers because they will also become buyers once their current home sells.

Hesitant Sellers Will Be Ready to Sell

The COVID-19 pandemic brought most things to a standstill, including the housing market. As more people elect to get vaccinated, sellers might become more comfortable putting their homes on the market.

The Forbearance Program Is Ending

The end of this program has been rumored to lead to a rise in foreclosures. However, many experts believe that it actually will contribute to an increase in homes for sale instead. The level of equity that homeowners now have in their homes will lead them to be able to sell rather than face foreclosure.

If you’re thinking about selling your home, you may want to do so soon, before additional competition enters the market. As more homes are listed, and buyers have more options, housing prices will drop.

About Andrew Shader

Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.