Why is housing inventory so low, and when will it improve?
Why is housing inventory so low, and when will it improve? Let’s talk about it.Hey there, Jenevieve Croall here with JLUX Homes. Right now, we are in a sellers’ market, so there is intense competition for buyers. The bottom line is that there are far more buyers searching for a home than homes for sale. So why the big shortage? We can attribute the shortage to a few things…The first reason is that New home construction has fallen behind despite a continuously increasing population. Builders have not been able to build enough homes to meet historical averages for 13 straight years. Another factor for the shortage is the pandemic. Under lockdown, inventory plummeted to record lows, as sellers stopped putting their homes on the market, while buyers quickly snapped up the few that were still available. At the same time, 2020 mortgage rates sunk to levels not seen in a generation and buyer demand skyrocketed, with eager millennials willing to pay top dollar for the shrinking number of available homes.So when will the shortage end? There is good news! Experts predict that more homes will soon be available due to sellers reentering the market. And while inventory should keep moving upwards, don’t expect a sudden surplus any time soon.Buyers can also expect to have a little more luck finding a new construction home this year, but supply will still be pretty tight. But you shouldn’t put your plans on hold just because the market hasn’t stabilized yet. Waiting could cost you as interest rates will likely increase, and home values will continue to rise. Contact us today for a complimentary consultation. As your trusted advisor, I will help you navigate today’s low housing supply while still reaching your real estate goals. I look forward to serving you.
