Three Reasons There’s A Shortage of Homes For Sell
Ask anyone who’s trying to buy a home right now, and they’ll probably describe the experience as “competitive, challenging, and exhausting.” The reason is simple: there are way more people looking for a home to buy than there are homes for sale. But the cause? That’s a little more complicated.
Housing Shortage Cause #1: New Construction Shortfall
When the housing and lending markets collapsed in 2007, many builders found it a lot harder to get financing for new construction projects, especially when the economy was still recovering and demand was low. As a result, the industry shrunk and a lot of skilled labor moved on to different trades or industries. Now that demand has surged, the construction industry can’t just “catch up” overnight. Pair that with huge supply chain problems in raw building materials like lumber and hardware due to COVID, and you just can’t build new houses fast enough.
Housing Shortage Cause #2: Buyer Demand
Fueled by the largest generation since the baby boomers, Millennials have been gradually hitting home buying age, and their home purchase trend is peaking right now. Many millennial buyers are part of the new generation of work-from-home employees, so they can choose to live wherever they’d like regardless of commute. More and more, that means they’re choosing SunCrest for the lifestyle our neighborhood affords. In addition interest rates remain near record lows, making it a very attractive time to buy.
Housing Shortage Cause #3: The Coronavirus Pandemic
All of the conditions above already existed before COVID, but the pandemic threw gas on the fire. Now, our homes are even more important. They’ve turned into home offices, home gyms, schools, daycares, and staycation spots. The economic recovery will likely keep interest rates low. And it’s also like the toilet paper craze—the more people can’t buy something, the more they try. Homes are snatched up fast, and some people who might otherwise sell their homes have decided not to, for fear of not being able to buy a new one.
Are there really less houses for sale in SunCrest? Sorta. We looked at a 5-year history and the total number of homes sold has been pretty consistent year-over-year. However, the amount of time on the market for these homes has indeed clearly reduced. The total sales price and number of offers for each home sold has also increased. All of this means one thing: now is an exciting (but challenging) time to make a move in the real estate market, whether buying or selling. Partnering with a neighborhood expert to explore, discuss, and answer questions will help you figure out your unique situation and the best path forward.