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Inventory Myth Busting: Why is Home Inventory So Low?

When it Comes to Explaining Low Inventory Some Theories Are Better Than Others

Everyone agrees the U.S. housing market is being squeezed by low inventory. What they don’t agree on is why.

As home inventory sits near post-recession lows, there are many hypotheses on why there are so few homes for sale today. Here are the five leading theories: (1) investors bought up too many foreclosures during the bust and are hording them as rentals, (2) rising prices have made buying a home unaffordable, (3) owners don’t want to sell if they don’t think they can buy another home, (4) too many home-owning boomers can’t or don’t want to move, and (5) owners who want to trade up can’t find an affordable home at the next level.

To date, these educated guesses have primarily been tested in isolation through simple correlations with inventory, with little or no regard to analyzing what their impact is relative to other factors. When you wear statistical blinders, you run the risk of ignoring potentially more impactful factors when you’re trying to identify the cause of a problem. To be fair, we’re just as guilty as anyone of looking at possible reasons for low inventory in in isolation when we looked at rising home values and a widening price gap. Continue reading Trulia article here…

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How to Save For a House in One Year

7 simple steps to help you save for a house in just twelve months.

Want to buy a home but don’t have a pile of cash in the bank? You’re not alone. Trulia research tells us that saving up for a down payment is the biggest obstacles to homeownership for first-time buyers, behind poor credit history, qualifying for a mortgage, and rising home prices. When I saved up for my first home, it took several years. So as I can attest, the struggle is real but not impossible.

First, how much should you aim for? When thinking about how to save for a house, it’s not just the down payment you have to consider. Closing costs, escrow fees, and initial payments on taxes and insurance can quickly add up. Tools like Trulia’s Affordability Calculator can help you figure out your personal home buying power so that you have a clear goal in mind.

In order to sock away what you’ll need, you’ll probably want to examine every single dollar you spend—and keep up that vigilance for the entire year or longer. As an example, if you want to buy a home that costs $250,000, you’ll need about $50,000 in cash for your down payment (factoring in a 20% down payment). Building a savings fund of $50,000 in 12 months will require you to set aside $4,167 per month for the down payment.

How can saving money here and there add up? Here are 7 ideas to help you save for a house in one year. Continue reading on Trulia here…

📲 Questions?
📲 Buying or selling a home?

Give your Winning Team, The Lynch Group a call at (949) 842-5340 | See what your home could sell for in 30 seconds, visit

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