The biggest home buying problem I’m hearing from buyers right now isn’t qualifying for the mortgage, it’s finding a property to buy.
In November, inventory in Chicago was 42% below what it was just a year ago. Yes, it’s the slow time of the year, but it was also the slow time of the year in 2011 and the years before that.
According to Gary Lucido, who has been documenting the inventory over the last several years on his Getting Real blog, condo inventory as of October has plunged to just 4.5 months of supply. 6 months is considered a “normal” market. Anything under 6 months is a seller’s market.
Check out Gary’s great graphs with contract activity, inventory and distressed property sales here.
To add to the pain, there is literally almost nothing new coming on the market.
Where are all those sellers eager to move on? Apparently they’re not eager to take a loss so they’re sitting on the sidelines.
But February begins Chicago’s busy spring buying season. New properties should start coming on the market in the next 4 weeks.
Will the low inventory mean buyers face higher prices in 2013?