We are currently in the ultimate sellers’ market, which means competition between buyers right now is at an all-time high. The question many homebuyers are asking themselves is, “Why is it so hard to find a house?” , The National Association of Realtors (NAR) reported that homes are getting an average of 4.8 offers per sale, and that number keeps rising with so few houses for sale.
Comparative to what we saw in 2017 to 2019, March 2021 was roughly 117,000 new listings lower. Despite this week’s gain from a year ago, we’re 19 percent below the new seller activity that we saw in the same week in 2019.
While many homeowners have paused their plans to sell during the height of the pandemic, this is not the main cause of today’s supply and demand difference. The main driver of the housing shortfall has actually been the long-term decline in the construction of single-family homes. That decline has resulted in the decrease in supply of ’starter homes’.
Even before the COVID-19 pandemic and current recession, the housing market was facing a substantial supply shortage and that deficit has grown. To catch up to current demand, Freddie Mac estimates we need to build almost four million homes. The good news is builders are working hard to get us there!
Remember this, if you’re planning to buy in today’s low inventory market, the key to success will be patience.