As summer comes to a close, the story remains the same – inventory issues and declining affordability.
There are 12% fewer homes for sale than at this time last year in our market. Carroll County’s inventory of active listings is 19% lower than last year!
This has not only frustrated buyers throughout 2017 because they find a home they love, it has pushed prices up despite higher interest rates. Average price is up around 5% from last year, with Carroll Co again leading the way with a 7% increase thanks to that big reduction in inventory.
The other component of housing affordability is interest rates, which are up between 1/4% and 1/2% from last year. Higher price and high cost of financing equals lower affordability!
But why is demand still high if affordability is trending downward? It’s gotten super expensive to rent! Only a few years ago the rental market was flush with homes owners couldn’t sell because they were under water on price. Those days are gone and affordability is keeping potential buyers out of the market, so there is am imbalance in supply/demand for rentals as well.