Buyers Want To Know: Why Is Housing Supply Still So Low?
New Home Construction Fell Behind for Several Years
Builders exceeded the long-term average for housing units completed during the housing bubble. The result was an oversupply of homes on the market, so home values declined. That was one of the factors that led to the housing crash back in 2008. Since then, the level of new home construction has fallen off. For the last 13 straight years, builders haven’t been able to construct enough homes to meet the historical average. That underbuilding left us with a multi-year inventory deficit going into the pandemic.
The Pandemic’s Impact on the Housing Market
Then, when the pandemic hit, it fueled a renewed appreciation and focus on the meaning of home. So, as mortgage rates dropped to at or below 3%, buyers eagerly entered the market looking to capitalize on those low rates to secure a home that would fulfill their changing needs. At the same time, sellers hesitated to put their houses on the market as concerns about the pandemic mounted. The result? The number of homes available for sale dropped even further.
What Does All of This Mean for You?
If you’re planning to buy this year, the key to success will be patience given today’s low inventory. DM me to discuss what’s happening in our area, what homes are available, and why it’s still worthwhile to prioritize your home search today.
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