Is A Lack of Listings Slowing Down the Housing Market?

Chris B Johnson, REALTOR®   Neighborhood Market Report  Mortgage Pre Approval   Time To Buy A Home

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Lack of Listings Slowing Down the Housing Market | Simplifying The Market

The housing crisis is finally in the rear view mirror as the real estate market moves down the road to a complete recovery. Home values are up. Home sales are up. Distressed sales (foreclosures and short sales) have fallen dramatically. It seems that 2016 will be the year that the housing market again races forward.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout this winter, supply is not keeping up.

Here are the thoughts of a few industry experts on the subject:

Calculated Risk:

“Low inventory is probably holding down sales in many areas.”

Capital Economics:

“A lack of housing inventory continues to drive developments in the market. As demand has slowly recovered, low inventory levels have weighed on home sales.”

Frank Nothaft, Chief Economist for CoreLogic:

“Many markets have experienced a low inventory of homes for sale along with strong buyer demand... These conditions are likely to persist as we enter 2016.”

Doug Duncan,Chief Economist at Fannie Mae:

“Several factors point to constrained housing affordability in 2016, particularly for first-time home buyers, including slow single-family supply response and limited inventory of starter homes on the market.”

Lawrence Yun, Chief Economist at NAR:

“Sparse inventory and affordability issues continue to impede a large pool of buyers’ ability to buy, which is holding back sales.”

Bottom Line

If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.

Chris B Johnson Realtor
Allison James Elite
Moorpark, CA
(805) 208-0823
Your home is probably the biggest asset that you own. That is why you need to choose a partner, who is working for YOU to get the job done correctly, the first time. One who is concerned about Quality, not Quantity.
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Comment balloon 8 commentsChris B Johnson • January 13 2016 06:59PM


Thanks for the informative blog post, Chris.  It sounds as though things are looking up for 2016 - hopefully more homes will be put on the market to begin to keep up with the demand.

Posted by Bob Crane, Forestland Experts! 715-204-9671 (Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities) over 3 years ago

Chris - It is indeed a good time to sell when there is low inventory and buyers wanting to buy. We are experiencing a little of that here in AZ, but new home construction is increasing.

Posted by Troy Erickson AZ Realtor (602) 295-6807, Your Chandler, Ahwatukee, and East Valley Realtor (Good Company Real Estate over 3 years ago

Good Thursday morning Chris.  I heard on the news last night that our area enjoyed a rise in December sales.  Up 23% in 2014 with a price increase as well. Onward and upward in real estate. 

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) over 3 years ago

Our area has a lack of inventory - now would definitely be a good time for sellers to get their house on the market!

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, over 3 years ago

AMEN Kat Palmiotti 

Posted by Chris B Johnson, 5 Star Rated REALTOR® Quality, Not Quantity (Allison James Elite) over 3 years ago

More is Better Bob Crane !!

Posted by Chris B Johnson, 5 Star Rated REALTOR® Quality, Not Quantity (Allison James Elite) over 3 years ago

We are seeing more new home constuction too Troy Erickson 

Posted by Chris B Johnson, 5 Star Rated REALTOR® Quality, Not Quantity (Allison James Elite) over 3 years ago

An increase in Volume and an increase is prices would be great John McCormack !!

Posted by Chris B Johnson, 5 Star Rated REALTOR® Quality, Not Quantity (Allison James Elite) over 3 years ago