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Real Estate For Dummies: “Low Inventory”

If you’re tracking with real estate you’ve probably heard the term “low inventory” thrown around.

What does that actually mean?

milk 245x300 Real Estate For Dummies: Low Inventory

Imagine you and fifty other people walk into the quick mart to grab some milk. (Yes, you’re living in the burbs.)

On the shelf there are only 5 cartons of milk available. What are your odds of getting the milk? Slim to none, right?

BUT, you drink 1% milk and there’s only ONE of those available…how are your odds looking now?

There is clearly a “low inventory” of milk available. The number of milk cartons available compared to the number of people wanting to purchase milk are skewed. If you are a home buyer, you are the person going in to purchase milk. If you are a home seller, you are the milk carton. Who do you think holds the cards?

Modesto and the surrounding real estate market share this milk dynamic. There are FEW homes available, and of those homes, there are a fewer number of homes that will appeal to you and even fewer of those homes that will meet your criteria of location, size, schools….

Is this true of EVERY niche of the market? Nope. The entry  and mid level markets are H.O.T. with many people shopping (probably like the number of fat free milk drinkers vs. people buying a jug of heavy whipping cream).

Low inventory, got it?