Why Low Home Inventory Hasn’t Cooled Home Buyer Demand

Q: We’ve been thinking about selling our home for a while. I’m concerned that there may not be many buyers out in the market right now. What do you think? Brett, Orange, NJ

A: Mortgage rates are currently much higher than they were during the pandemic, however, life circumstances like a new job, a job loss, divorce, retirement, illness or death often force potential home buyers to act rather than wait regardless of home inventory availability and mortgage interest rates. Even with higher mortgage rates, there are willing and able home buyers in most local real estate markets. Also, The Federal Reserve is expected to cut its benchmark interest rate this fall, which should lead indirectly to lower mortgage rates next year and prompt more home selling and home buying activity. The U.S. population rose by 70 million people in the last 30 years which means there are more potential home buyers who want to buy and home inventory is finally increasing–higher home inventory normally leads to more home sales. Thanks for your question, Brett.

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