Trust This. Real estate inventory surge and balance

For real estate professionals, this inventory surge offers both opportunities and challenges.

The increase in homes for sale may ease pressure on buyers in markets like Florida and Arizona, where demand outstripped supply for years.

With more homes on the market, seller competition is rising, which could lead to price corrections, particularly in areas with higher unsold inventory.

States like Illinois and Connecticut have almost 75% fewer homes for sale than in 2019, creating a regional imbalance that could drive migration patterns.

Many states experiencing inventory growth have also seen high levels of new construction.

Builders could face a glut of unsold properties if migration slows or shifts, leading to further downward pressure on prices.

The Orlando housing market, after experiencing a frenzy of skyrocketing prices and dwindling inventory during the pandemic, is cooling off.

Median home prices have dipped from $395,000 in June to $390,000 in July, and inventory has grown by 3.4%, bringing the supply to 4.21 months.

This marks a move toward a more balanced market that should ease the pressure on both buyers and sellers, creating a more predictable business environment for real estate professionals.

With interest rates remaining high—averaging 6.6% for the year—the biggest challenge continues to be affordability for potential buyers.

Over 52% of agents say interest rates are the largest barrier to home purchases, according to a survey from the Orlando Regional Realtor Association.

However, a stabilizing market, coupled with a predicted rate cut by the Federal Reserve, could lead to a resurgence of activity, particularly for first-time buyers.

Real estate agents in Central Florida must adapt to new commission disclosure rules following a $418 million settlement with the National Association of Realtors.

These changes require greater transparency, which may shift how professionals negotiate and conduct business.

Additionally, with inventory levels rising, agents should prepare for a more competitive environment where strategic marketing and pricing become crucial.

My parents and many other relatives live in Marion, NC — my boyhood hometown.

My brother and sister-in law live in Cullowhee near Western Carolina University on the west side of Asheville.

My niece and her husband live in Sevierville, TN near Pigeon Forge and Gatlinburg.

We have a second home in Asheville (see last week’s picture in this part of the newsletter).

Having lived through too many hurricanes, I looked around and quickly realized that Atlanta had no idea what was coming and was unprepared. I changed my flight from Friday evening to Thursday morning and flew out at 6:20 a.m. back to Orlando.

Even if the storm hit Orlando head-on, I was better prepared in my home there. I knew we could recover power, water, and other necessities sooner than they would in Atlanta.

Anyone could see they were in the middle of the path of the storm and experiencing the same drenching rains that Atlanta was feeling.

I started warning my family to get prepared, but they couldn’t believe it would be that bad. They filled up their cars with gas and got some bread.

They had no other communication with the outside world, so I started feeding him information with short text messages until 3:30 a.m. Saturday morning, when we were all too exhausted to go on.

After a few hours of sleep, I started texting again. I found what looked like an open route out of Marion and to the interstate and texted the directions.

Finally, when they realized the water would run out or be contaminated, they agreed it was time to leave.

After running into roads blocked with trees and power lines, Dad finally found a way to the interstate and headed to my aunt’s house in eastern Virginia, where they’ve been since.

They all thought it was just like any ice storm in the past and that power, water, and communications would be back in a few days at most.

As I was able to send them text messages, the reality of the situation sunk in. I was able to give them routes to the airport and points South, which they shared with others.

They were able to evacuate as well.

But some are still so trapped by washed-out roads, landslides, and downed trees that there’s no hope of getting out this week or maybe even for weeks to come.

A cousin has a plane, and I’ve connected them with agencies that are airlifting food and supplies into Asheville and Hickory for further distribution around WNC.

Other trapped friends are posting pictures of ready-to-eat meals (MREs) that the Army and National Guard have been dropping to them from helicopters.

An Atlanta chemical plant fire forced 90,000 people to shelter in place.

There is no hope that water will be restored to all of Buncombe County and Asheville in the foreseeable future.

Power restoration and road clearing are happening with help from neighbors and those coming in from across the country and Canada, but it will be one of the largest infrastructure projects in history.

Asheville area friends have texted me that they’re seeing the National Guard and other agencies pulling bodies out of rivers and mudslides, so expect the death toll to increase.

Secondly, I want to impress on everyone that — no matter how prepared we think we are for a disaster — it’s not enough.

I’d never considered losing connection to the Internet or cell service.

I’d never considered entire municipal water systems being destroyed and down for months.

I’d never considered interstate highways being covered in landslides or washed away by rivers, cutting off escape routes so that you’re physically stuck.

We will also focus on the emotions that stun us after such disasters and develop techniques for spurring ourselves, our friends, family, and co-workers into action.

If we continue to ignore emotional disaster preparedness, then denial, bargaining, sorrow, complaining, being overwhelmed, confused, and scared will continue to paralyze us at the most critical times before and after the disaster happens.

The sooner we “snap out of it,” the sooner we can focus on the reality of the situation and start healing.

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