Why is inventory low in the current housing market?

Fewer sellers are listing their homes compared to typical years—in April 2023, fewer than 400,000 sellers entered the market versus the historical norm of roughly 500,000. A major factor is "rate lock," where homeowners with low mortgage rates are reluctant to sell and take on a higher rate on their next home; a Realtor.com survey found 56% of prospective sellers in the next 12 months are waiting for rates to come down.

What advantage do sellers have in a low-inventory market?

When fewer homes are for sale, buyers have limited options, which means your house will receive more attention and can stand out—especially if priced right. According to the National Association of Realtors, multiple offers are returning on a good number of properties in these conditions.

When is the best time to sell your house?

If you're ready to move and your current house no longer fits your needs, now is an opportune time to list before more competition enters the market. Selling when inventory is low gives you a competitive advantage and increases the likelihood of multiple offers.

The Best Time To Sell Your House Is When Others Aren’t Selling

By Anne-Britt OstlundMay 11, 20233 min read

Selling Your Home

If you’re thinking about selling your house, you should know the number of homes for sale right now is low. That’s because, this season, there are fewer sellers listing their houses for sale than the norm.

Looking back at every April since 2017, the only year when fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):

While there are a number of factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.

As a recent survey from Realtor.com explains, 56% of people who are planning to sell in the next 12 months say they’re waiting for rates to come down.

While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.

If your current house truly doesn’t fit your needs anymore and you’re ready to move, don’t miss this chance to stand out. When fewer sellers are putting their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties.”

Bottom Line

If you’re ready to sell now, beat the competition before it comes onto the market. If you do, your house should stand out and could get multiple offers. Partner with a real estate professional to get your house on the market. When you do, make sure to contact Anne-Britt of Mountain Rose Realty in Telluride, Colorado. She has the experience and knowledge needed to get your house sold quickly and at the best price possible. Her team of real estate professionals are passionate about helping people find their dream homes in Telluride and will go above and beyond to ensure that you’re satisfied with the results. So don't wait any longer, contact Anne-Britt today and let her help you buy or sell in Telluride Real Estate!

Anne-Britt understand what matters most to buyers these days – whether it's access to good schools, nearby shopping or the ability to enjoy outdoor recreation without having to go far from home. Her years of experience make her an invaluable resource for anyone considering buying or selling real estate in Telluride.

Whether you’re selling or buying, if you want success on your side then choose Anne-Britt and Mountain Rose Realty. Partner with them to find the best real estate options in Telluride. With their help, you’re sure to make an informed decision and get the most out of your real estate transaction. Don’t wait, contact Anne-Britt today!

Frequently Asked Questions

Why is inventory low in the current housing market?: Fewer sellers are listing their homes compared to typical years—in April 2023, fewer than 400,000 sellers entered the market versus the historical norm of roughly 500,000. A major factor is "rate lock," where homeowners with low mortgage rates are reluctant to sell and take on a higher rate on their next home; a Realtor.com survey found 56% of prospective sellers in the next 12 months are waiting for rates to come down.
What advantage do sellers have in a low-inventory market?: When fewer homes are for sale, buyers have limited options, which means your house will receive more attention and can stand out—especially if priced right. According to the National Association of Realtors, multiple offers are returning on a good number of properties in these conditions.
When is the best time to sell your house?: If you're ready to move and your current house no longer fits your needs, now is an opportune time to list before more competition enters the market. Selling when inventory is low gives you a competitive advantage and increases the likelihood of multiple offers.