Why there are so few houses for sale

For the past two years the main story in the housing market has been the lack of inventory, of houses for sale.

But why is that?

The National Association of Realtors (NAR) suggests the principal reason is the low level of new construction compared with historical figures, as show in the table below.

At the end of May total housing inventory was 2.29 million units. The shortfall in new construction since 2009 is double that at 4.54 million units.

Source: NAR

The good news is that new construction is picking up, but it is not forecast to reach the historic number of 1.5 million units until at least 2017, so the inventory problem looks like it will be with us for a while longer, as more people elect to stay in their current homes.

If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.

Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated

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