Tight housing inventory: Is there relief in sight?

The future of housing inventory
Housing inventory has been tight for some time and this may continue.

If you have kept up at all with real estate headlines during the past 2 years, then you are likely well aware of the housing inventory constraints across the country. This tight inventory of homes for sale combined with historically low mortgage rates and more people relocating throughout the country has resulted in a record level of bidding wars. In addition, this increased demand for homes is outpacing the rate of new home construction. Furthermore, we are seeing more older Americans aging in place. This is resulting in fewer Baby Boomers downsizing as compared to previous generations. Needless to say, fewer homes for sale combined with increased buyer demand has resulted in quite a difficult time for home buyers during the past 2 years.

Is housing inventory relief on the way?

As of now, all indicators point to a typical winter seasonal slowdown in the housing market followed by another strong spring home buying season. With supply chain issues still impacting the new home construction market, it will be difficult for the new construction market to help alleviate this pressure. Of course, inflationary pressures and a tight labor market will also continue to present challenges in this market as well.

Another factor that may also ease some buyer demand is the mortgage interest rate. It is expected that mortgage rates will continue to rise at a gradual pace throughout 2022. Of course, as this rate rises, more potential buyers may be priced out of their respective markets. The Federal Reserve will be focusing on controlling inflationary pressures through strategies such as rate increases.


As always, housing inventory will vary from market to market. As we have written about numerous times before, South Florida continues to see exceptional growth. With many Americans relocating to The Sunshine State, we expect housing inventories to remain tight throughout the state for the foreseeable future. The foreclosure market will be another segment of this space that should be continually monitored as well. All in all, the South Florida real estate market is largely expected to remain strong moving forward.

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

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