What is Housing Inventory in Tampa?

What affects the number of homes for sale and why it matters.

Housing inventory is a key indicator of the strength housing market and the overall economy. Housing inventory, simply put, is the number of homes for sale. Economic forecaster keep a close eye on the National Association of Realtors (NAR) housing inventory report, which estimates how long it would take to sell all of the houses on the market at that time.

Understanding the Housing Inventory

In a healthy housing market, it would generally take six to seven months for the available housing inventory to sell. During 2008 the Housing Bust pushed supply above 10 months. Analysis of the 2011 figures from NAR show a slight improvment with a supply that would take 9.5 months to clear off the books.

What Makes Inventory Rise or Fall?

• Federal Policy- The NAR figures show that inventory dropped below eight months supply in September 2009, as buyers hurried to qualify for a tax credit of up to $8,000. for first time home buyers. When the tax credit expired on July 1,2010 the report shows that the supply spiked at 12.5 months before leveling off.
• Foreclosures- January 2010 was the height of the housing crises. At that point, about 2 million homes, or 8.5 months of inventory were about to come on the market due to foreclosures.
• Credit Cost and Availability- When banks make it easier or harder to get a loan or when interest rates fluctuate, the change can affect housing sales. The unemployment rate can also have a similar effect.
• Buyer Willingness to Shop- High gas prices and severe weather such as wintercan also discourage potential buyers from house hunting. Inventory also tends to fluctuate seasonally, since many buyers prefereto move in the spring and summer that coincides with school being out. and better weather.

If you have any questions about housing inventory or buying or selling a home, please send me an email, text, or give me a call.

Search Tampa Homes For Sale