Real Estate Mysteries: Why is housing inventory so low?

It's a great question, and one that we're asked all the time. We're currently at an 8 year low in housing inventory in the Knoxville market and according to the fine folks over at Inman, this is pretty much a national trend. Luckily for us, they also have a pretty good set of explanations.  

It boils down to this:

  1. Capital gains tax. 
  2. Step up in basis (yeah, I didn't know what that was either. Read the article). 
  3. Susatained low interest rates. 
  4. Home value disruption in 2008 and 2009. 
  5. Home values still not at peak. 
  6. Sense that values will continue to climb. 
  7. The "I refinaned into a great interest rate/Where would I go?" dilemma. 
  8. Stunted new development. 

It's a good read over your long weekend coffee. Check it out and let us know your thoughts.