Region’s Real Estate Market Suffers from Lack of Inventory

December 2, 2010 – BOSTON:  Amid the recent stories of a slow recovery in the nation’s real estate market, Boston area real estate agents are battling with a different challenge – a lack of inventory. They have an active pool of qualified buyers – but not enough homes for them to buy.

“We are used to being ahead of the curve,” said Michael Hansen, Owner of Gibson Sotheby’s International Realty. “Boston tends to recover from economic dips before most of the country. That is what we are seeing now.”

In the last six months, Boston has seen a lot of movement at the higher end of the market. Experts attribute that to “smart money” re-entering the market. (Smart money is the term used to describe the more affluent and savvy investors.) That movement in the higher price points has been followed by improving home sales at other price ranges. And, with all that activity, the supply has dwindled.  “We have a lack of inventory,” said Nick Russo, a veteran real estate broker of more than 30 years. “I have clients who are ready to buy in the South End, but there aren’t enough units out there.”

“I have been working with clients searching in the Back Bay for a $2.5 million home,” notes real estate agent, James Plasteras. “It has been a challenge to get a pool of homes that work for them. And I am seeing that at other price points, as well.”

Karl Case, of the Case-Shiller Home Price Index, shared his predictions at a lecture in Boston this week. “I don’t think we’ll have a double-dip,” said Case. His prediction is for a continued recovery in the market, with the northeast coming out of the recession ahead of the rest of the country.

“What we need now are listings,” said Hansen. “If anyone has been considering selling their home, now appears to be the time to get it on the market, because there are definitely buyers who are ready to move.”