Inventory/supply conditions were reported to be improving, as reflected in the increase in the Seller Traffic Index to 46 (from 43 in May). The Buyer Traffic Index dipped slightly to 69 in June (from 71 in May), possibly due to the impact of rising prices and higher mortgage interest rates. REALTORS® reported that not enough inventory was coming on the market from both REOs and homeowner listings as current homeowners wait for prices to move up further. About 47 percent of REALTORS® reported having potential sellers waiting for further price appreciation. The information is based on the June REALTORS® Confidence Index (RCI) Survey.
What Does this Mean for REALTORS®?
The major problem holding back the current residential sales market expansion is a lack of inventory. This is a condition that is likely to continue for the foreseeable future, so REALTORS® may want to focus on informing potential buyers as to the limited inventories of available homes and the need to move quickly once a desired home is identified.