Increasing Home Inventory Suggests Slight Relief in Tight Real Estate Market
The housing market is experiencing a mix of factors that influence supply and demand. Despite high interest rates and strong demand, the number of homes for sale, or inventory, has been gradually increasing. While this may not immediately impact prices, it does offer more options for homebuyers.
Previously, the housing supply had been declining month after month. However, over the past three months, there has been a reversal of this trend in the state. One contributing factor is the Baby Boomer generation, who, being in good health, have chosen to remain in their homes longer than expected.
Additionally, new home construction by individuals and companies has also affected the inventory. This creates more opportunities for buyers to find a suitable home, as the market had been experiencing tight supply, pushing many first-time homebuyers out of the market.
In the Central Wisconsin area, there is a positive trend in inventory, with more listings becoming available. This is especially evident in Wausau, where people are eager to participate in the market before inclement weather arrives.
Competition is fierce in the under $250,000 price range, so prospective buyers should be prepared for that. Another market dynamic is that homeowners are hesitant to sell their properties due to the high interest rates associated with purchasing a new home.