Hi there, I’m Rachel Pope with Jean Scott Homes. I wanted to go ahead and continue on from the last two videos and continue discussing COVID-19 and this pandemic’s effect on the housing market, what we’re doing to combat it, and then how we’re still helping our buyers and sellers meet their real estate goals each and every day.
In the last video, we started exploring five things that we know to be true about the housing market today that were actually different than in 2008 and we discussed the appreciation of the housing market then and today, I want to start discussing inventory.
One of the causes of the housing crash in 2008 was an oversupply of homes for sale. A market imbalance is 6 months of inventory, meaning there are similar numbers of buyers and sellers in the housing market at the same time. There were too many homes for sale in 2007, which has causes prices to plummet.
Today there’s a shortage of inventory across the country with well under 6 months of inventory, which has led to an increase in home values.
For more information about this, please feel free to reach out, we’d love to share with you the resources that we’ve been using to keep up to date. During the next video, we will start talking about the affordability of houses. Stay tuned and stay safe and healthy out there.
To follow along with our series, here’s Part 1: The Housing Market in 2008 and in 2020 with Rachel Pope and Part 3: Affordability and Home Prices with Tom Scott.