Not a whole lot. The inventory level is at an all time low over at least the last decade. Today, there are 306 properties available. Right after Lehman Brothers filed Chapter 11 in Sept. ’08, there were 732 properties available, almost 2.5x – that’s amazing! There were 17 properties under agreement three months after* Lehman blew up. Today, there are 67 properties under agreement. 4x – talk about cherry on top!
End of 2008, beginning of 2009 was the time when inventory was at a high and activity was at a low. Now, inventory is at a low and activity is at a high. That being said, just as value decreases lag when the mob is panicking, value increases lag when the mob is optimistic. So, now is still a great time to buy. Prices have not gone through the roof, which, I really feel they are on the brink of doing, and interest rates are still very low, which are also on the brink of shooting up. The market is very fair right now – buyers can get a good buy and sellers can get a good price.
That being said, time is running out before we see a run in values. I always like going back to my trustworthy Econ. 101 theory – demand goes up, supply goes down, value goes up…
*This takes into account the properties that were under agreement before Lehman blew up and gives us a better sense of the effect of Lehman and the Great Recession.
