Why Are Lodi Existing Home Sales Down

Dated: 08/31/2018

Views: 113

<a href='https://www.yourperfecthomegroup.com/index.php?types[]=1&types[]=2&areas[]=city:Lodi&beds=0&baths=0&min=0&max=100000000&map=0&quick=1&submit=Search' title='Search Properties in Lodi'>Lodi</a> Existing Home Inventory Down


Why are existing Lodi home sales down, you ask? Is it the demand for Lodi homes diminishing? Have all the existing buyers already found homes? Has the price of homes reached a peak?

Many experts are wondering about the trend, not only in Lodi, even nationwide. As we see the economy strengthening and unemployment rate going down. Also, wages are on the rise and interest rates near all-time lows. With all these positive indicators why aren’t existing home sales continuing to rise?

What we are seeing in the marketplace is that there are lots of buyers out there that are ready, willing, and able. When homes have the right price, as they come on the market they get bought up within the first few days. 

What we see is a shortage of inventory. Plenty of buyers and not enough homes for them. It would seem then that the softening of the market is from a shortage of inventory, not a lack of buyers.

What Is The Cause Of The Housing Shortage?

Let’s check out the graph below,

Residential New Home Construction Statistics


Look at the new home construction, it is well below the levels from 1995 to 2002. A quote from a recent industry survey said;

Today’s housing concerns can be attributed to lower than normal new housing permits

You’re thinking we are talking about existing home sales slowing in Lodi, aren’t you? And the answer would be yes we are. What’s the correlation between new home construction and existing home sales, you ask?

The answer is existing Lodi homeowners are looking for upgrades in their homes. A home that match their needs and their lifestyles. And those home upgrades come in a new construction home. With the lower amount of new home construction, there are few choices for them. Hence, they aren’t placing their existing homes on the market. This is leading to the current shortage on inventory.

New home construction will lead to an increase in existing home inventory. This will lead to more existing Lodi home sales and a moderating of appreciation.

If you have any questions or would like to discuss buying or selling a home. Give us a call at 209-762-3552.


Blog author image

C. Ray Brower - CalDRE #01969248

Are you looking for an agent who will listen to everything you have to say, from your very first contact with him, all the way until the day he hands over the keys to your new home or closes the deal ....

Latest Blog Posts

What Is Renting Your Stockton Home Costing You

Are you renting your Stockton home? Have you been wondering what the actual cost of renting is? Do you believe that renting your Stockton home is more cost-effective than buying?We have

Read More

Should You WaitTo Buy Your Stockton Home Based On A Higher Interest Rate

Have been thinking you are going to wait to buy a Stockton home because of the interest rate have gone up? Have you said I'm going to wait until prices and interest rates go down before I buy my

Read More

The 5 Reasons Buying Your Lodi Home Makes Sense

If you've been thinking about buying a Lodi home. This video could be for you. In about a minute you'll learn the 5 reasons why buying a Lodi home makes sense.Most people after seeing 

Read More

Your Stockton Home Could Have Appreciated 21 Percent

Did you know your Stockton home could have appreciated as much as 21.7% in the last year? Have you been thinking about selling your Stockton home this year? Well, now would be a great time to talk

Read More