In some parts of South Dakota, the inventory and the “days on market” are almost infinite b/c supply vastly outstrips demand. It takes far fewer people to work the huge farms in the region and rural populations have plummeted. Oddly – people aren’t migrating to a region where temperatures range from 110 degrees above zero to 50 degrees below zero :).
Anyway – in sharp contrast is a market like Oakland, where inventory shortages plague the market. Here is a Housing Wire article that explains why inventory remains so low.
In summary:
1. Average home-ownership tenure has nearly doubled since 2007 from about 4 years to almost 8 years.
2. Homeowners do not want to sell and give up their low fixed rates.
3. Homeowners are afraid they won’t be able to find a replacement home that meets their needs in a competitive market.
4. Investors own a much larger percentage of homes now, and they typically hold properties longer than owner-occupants. Investors like their rental returns and riding out the appreciating market.
Inventory also remains low in places like Oakland b/c it gets snapped up so quickly due to high demand; Oakland is now an awesome place to live with an excellent climate, a very strong job market and an amazing restaurant and City scene.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167
