If you’re like me, when you started the buying process you might have wondered why some houses are so outrageously priced and others are not. There are many factors that come in to play such as mortgage rates and availability, economic growth and personal demographics. But when prospective buyers are shopping their market, the one factor they may overlook is inventory shortage.
Real estate inventory is the quantity of houses that are available for purchase in any given market. When I’m out showing people properties, clients always amazed at how few mid-range homes there are. Clients also can’t believe how quickly they go.
The only time that inventory is a problem for home buyers is when the inventory is low. Basic economics. High demand and low supply yields high price tags for buyers. However, if you’re looking to sell, this is great news for you. The fewer homes available, the higher the price tag on your home.
In our current market in the Pacific Northwest, there has been an inventory shortage for several years. Due to the shortage, people are staying in their homes longer and moving less. Contractors are also in a bind because of the inventory shortages are causing prices to shoot through the room. Contractors don’t get paid for homes that sell for less than their cost for production, making them less inclined to build for fear of not making a profit.
In this quick video Matthew Gardner, Windermere’s chief Economist, breaks down the inventory shortage and it’s side effects. He also gives us a forecast for what might be to come.
Now that it is nearly summer in Northern Idaho, you can almost hear a collective sigh of relief across the Panhandle. The sun is out, flowers are blooming and we can finally head downtown to Coeur d’Alene’s wonderful farmers market! John and I have always felt personal conviction to buy local and to support our community and what better way than going out to meet the faces behind all the hard work?
Just a short trip down town to 5th street and you’ll find dozens of tents full of color and aromas that will make you soar. Last year we bought some rare herbs for the garden at one of the local vendors and I was relieved to find that they are back again this year.
You’re also likely to find one or two dairies, some fresh made stone-fired pizza and handmade soaps and countless other crafts but my Granddaughter’s favorite is the strawberry ice cream that Sweet Peaks is selling. Sweet Peaks has been doing the farmers market for a while now, but are just opening up a food truck on 4th & Best Ave. They make all of their ice cream right on the spot with liquid nitrogen. It was really nice finally having ice cream that tasted like both cream and strawberries (real ones).
We hope you get out to the next one and make your own adventure like we did!
Downtown: Wednesdays 4pm-7
5th & Sherman
Hayden: Saturdays 9am-1:30
Hwy 95 & Prairie