Are you having a difficult finding a new home for a cheaper price? An interesting phenomenon seems to be taking place since the new year. According to a recently published article in Realtor Mag, the inventory for less expensive homes in plunging while there is a plethora of properties available for luxury property seeking buyers.
The article cites recent data from the National Association of REALTORS® which shows that in 2016, inventory of homes priced under $100,000 decreased 8.6% while homes priced above $1 million increased 15% in comparison to January 2015,
There could be many reasons for this, but I think the explanation for a shortage of lower priced houses is due to the influx of first time home buyers. The economy has seen improvment in the last couple years and interest rates are still at historical lows. This opens the door to many people who have never owned a home before and are looking to make their first purchase.
While this makes purchasing a home more difficult for buyers in that price range, it is great news for sellers as the demand is much higher than the supply.
Contact RK Realty Chicago today for a free market analysis of your property!