The largest issue in today’s housing market is low inventory. And there does not seem to be any relief in sight. There is heavy demand for the few entry-level homes that become available, with bidding wars becoming quite common for these properties. In a survey of mortgage professionals, 58% reported that low inventory is the biggest hurdle for home buyers. The second largest hurdle, reported that only 18.5% reported the lack of a sufficient down payment.
The lack of inventory appears to be highest in California and Texas.
These findings are reinforced by similar reports from real estate professionals.
With the shortage of available housing, prices for these homes, especially the entry-level homes, is causing prices to rise. This is also contributing to potential buyers needing a larger down payment, which is causing a concern to many renters.
