Solving The Housing Inventory CrisisMidyear Mortgage Update & ConferenceFriday, June 9, 2017

Paul Yorkis2017 PresidentMassachusetts Association of Realtors®

The News

Inventory: Pre-Home Buyer Tax Credit(2010)

www.thinglink.com

Today: The Inventory Desert

The Inventory NumbersFebruary 2017

12,376

February 20173,656

September 200638,662

June 200618,893

Highs

Lows

Months of Supply

Balanced Market 6.5 to 7.5 months

Buyers’ Market

Sellers’ Market

>7.5 months

< 6.5 months

How Bad?

Months of Supply

All-time Lows:

- Single-family - Feb. 2017: 2.6 months

- Condominiums: - Feb. 2017: 2.0 months

All-time Highs:

- Single-Family - July 2008: 11.1 months

- Condominiums - May 2008: 11.3 months

Q: Are we in a Housing Bubble?

Answer:

NO(I’m a Realtor not an economist, but I have some

thoughts…)

Definition

“A housing bubble is a run-up in housing prices fueled by demand,

speculation and exuberance…”

Source: Investopedia.com

What We Know: Today vs. Bubble

Today: Demand - High

Prices – High

Inventory - Low

Bubble: Demand - High

Prices - High

Inventory - High (Huh?)

Tale of the ‘Tape’ (Bubble vs. Today)

April 2005 April 2017 %change

Median Price $355,000 $362,500 +2%

Inventory 22,139 13,234 -40%

Months Supply 5.0 2.7 -46%

The ‘351’ Problem

How Do We Solve The Inventory Problem?

Solutions

1. More Homeowners to Sell their Homes;

2. People need to move in with family or move away;

3. Investors need to sell single-family homes to homebuyers; and

4. BUILD MORE HOMES!!!

The Solution to More Production Starts Here

What can you do to help?

Additional Food for Thought

$

Questions?