Why is home inventory low at the moment?

[Terry Harris]

I'm seeing and noticing a super low inventory in homes which is causing markets to become super competitive to a point where people are buying homes for above market value. I know the low rates have buyers seeking to purchase homes as well but my question is that if homes are being sold so frequently and some above market value or asking prices, why is the inventory so low? Just trying to get an understanding into how COVID can effect the inventory of homes.

[Dennis Cosgrave]

There are basically three reasons:

1) People have lost their jobs and do not qualify for a new mortgage if they choose to sell and repurchase.

2) People are still afraid of COVID and do not want strangers coming through their homes. They are delaying listing their homes until the threat has passed. 

3) Because of the decreased inventory, prices have moved higher in desirable areas, or have moved significantly lower in the big cities (NYC is prime example). Sellers cannot sell in less desirable areas for their asking price and buyers are being priced out of the market in desirable areas.