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    The Impact of Tight Inventory on the Housing Market

    The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery.Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.

    However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up.

    Here are the thoughts of a few industry experts on the subject:

    National Association of Realtors

    “Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale

    , and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace, which is down from 4.0 months a year ago.”

    Joseph Kirchner, Senior Economist for Realtor.com

    “The increases in single-family permits and starts show that builders are planning and starting new construction projects, that’s a good thing because it will help to relieve the shortage of homes on the market.”

    Sam Khater, Deputy Chief Economist at CoreLogic

    Inventory is tighter than it appears. It’s much lower for entry-level buyers.”

    Bottom Line 

    If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.

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    Lori Loesch

    Lori Loesch is our creative and joyful longtime Nashville resident. She has had a fascinating career that includes sales management, real estate, marketing, design and publishing. Lori is detail oriented and enjoys challenges and learning new skills. As a people person, she thrives on encouraging and helping others. Lori never meets a stranger and that is a wonderful skill to have in the real estate market. Lori joined The Milam Group in 2017 as the Marketing/Listing Coordinator. Her ability to design artwork, develop and implement marketing strategies, along with her curious spirit in the ever-changing world of social media, gives her an edge to make her the best Marketing Coordinator on the planet. “I enjoy going to work...not everyone can say that. Working at The Milam Group lets me be creative every day…and I love it!!! In the process, I get to help people and develop wonderful lasting relationships while working with an outstanding team of real estate professionals. I am truly blessed.” Lori was born in the Midwest, but spent her formative years in Florida. She and her musician husband, Joe have lived in Nashville for over 25 years. In her spare time, you will find Lori spending time with her family, working outside and involved with activities at her church. She is an accomplished inspirational artist and her artwork can be seen at LoriLoeschArt.com.

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