[vc_row][vc_column][vc_column_text]One of the hottest topics right now is the shortage of available homes. Simply put, there are many more potential buyers than there are homes for sale. As a seller, this means your house will get more attention, and likely, more offers. But as the pandemic comes to a close, you may be wondering if that’s something that will change.
While it may be tempting to blame the pandemic for the current inventory shortage, the truth is the low supply of homes was years in the making.
Our low supply goes hand-in-hand with the number of new homes built over the past decades
It’s not just today’s high buyer demand. The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.
Data in a recent report from the National Association of Realtors shows home construction has been lagging behind the norm for quite some time. Historically, builders completed an average of 1.5 million new housing units per year. However, since the housing bubble in 2008, the level of new home construction has fallen off.
Does that mean today’s ultimate sellers’ market is here to stay?
We’re already starting to see an increase in new home construction, which is great news. But newly built homes can’t bridge the supply gap we’re facing right now on their own. To meet today’s strong demand, more existing single-family homes must come on the market.
Home inventory is on its way
Good news – the latest housing reports show that housing supply is growing. Based on recent data, Lawrence Yun, Chief Economist at NAR, stated:
“As the inventory is beginning to pick up ever so modestly, we are still facing a housing shortage, but we may have turned a corner.”
What does all this mean? It’s still a great time to sell. Even though housing supply is starting to trend up, it’s still hovering near historic lows. Let’s connect to discuss how you can use the inventory shortage to your advantage.[/vc_column_text][/vc_column][/vc_row]