The Importance of Housing Inventory Statistics
We are all aware that statistics have an important role in many aspects of our daily life. They cover weather forecasts, medical studies, insurance, consumer goods, quality testing, the stock market and a lot more. Without statistics the numerical data gathered by marketing firms, companies that delve in the financial world, and researchers would be futile. This is why any form of statistic is significant.
Housing inventory is simply the number of houses for sale. Its statistics, aside from allowing potential buyers to see meaningful trends and changes in the world of housing, basically includes the number of houses available in the market. Lack of housing inventory statistics could result in low housing sales. Housing inventory could mean many things, whether you’re a buyer or a seller. High inventory means greater selection for potential buyers, while low inventory could push sellers to spike their price. And an increase on the fundamental price of a property may result in buyers choosing to rent rather than buy. A low market inventory could offer sellers high earnings despite having less quality houses. And spending a high amount of money on a junky home means nothing but a distorted market. Inventory statistics can also be determined by the period of time. In USA, if it is spring time, the housing inventory elevates because it is the season where housing activities are increased.
When real estate inventory is extremely low, the economy is being affected. In a healthy market, housing sales’ contribution to the GDP is roughly 20%. Residential real estate does not only provide housing for families but also could be the greatest source of wealth for many people. It specifically affects the economy through construction expenditures and consumption spending on housing services. When home prices continue to rise, homeowners gain more equity in their homes, making them put their house on the market.
Housing inventory statistics basically influence residential real estate sales. If the homes for sale are not enough, a price hike of the available homes would be the result, regardless of their quality. While higher inventory offers more choices to all the buyers, it also means the more chances of sales, thus the economy gains.