Housing Inventory is a very solid indicator of what is yet to come. Look at the following graph:
The peaks of inventory are also some of the toughest years the Real Estate Industry experienced. From 2005 forward inventory grew sharply. (Seasonal dips in the winter are common due to weather)
If you follow the blue line over the last four years it has been on the decline. Declining inventory = increase in demand.
Similar to visible inventory, the shadow inventory has a large affect on demand. It looks as if Shadow inventory peaked in 2009 and is slowly declining.
With visible inventory at a 6 year low and shadow inventory levelling off, we can expect things to get back on track sooner than later. While we are not out of the woods yet you can clearly see where we are headed.
Now is the time to buy a home. Don't look back and wish you made your move.
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