Moreover, the homeowners interested in selling their homes quickly realized that the low inventory would affect them. Though, there is no denying that the homeowners that were happy in their homes were more interested in their refinancing options and were more likely to take advantage of bargain-basement mortgages and other ways of lowering their monthly costs. That said, there was still a surge in home sales and prices this past year. The truth is that a significant number of homeowners decided to hold off and wait until more stable conditions before putting their house up for sale. Many would-be sellers are still holding off on listing their homes. However, the influx of motivated home buyers and investors is only further exaggerating concerns over low inventory.Īlmost everything housing-related, including new home sales, home improvement projects, and home prices, are in a V-shaped recovery. Regardless, many buyers are anxious to get into the market to take advantage of rates before they continue to increase. Demand Is Surging Because Of Low RatesĪlong those same lines, in fact, the market is seeing relatively low mortgage rates in years due to the pandemic. As a result, limited housing supply has been a concern for many years, and the pandemic proved that demand will outweigh supply for the foreseeable future. Nevertheless, industry experts agree that builders just simply cannot build fast enough. That said, towards the end of 2021, there was definitely an uptick in new construction, which did help to ease some of the pressure. Now, the lack of new and available residences has only been amplified by delays. Since the housing bubble burst in 2008, there has been clear growth in population and demand, yet at the same time, new construction has not been able to keep up. That said, it is evident that the new housing supply is not keeping up with the current demand for several reasons. Overall, according to the National Association of Realtors, the total housing inventory is down by more than 18 percent compared to previous years. Moreover, as we make our way through the first few months of 2022, it is clear that inventory is still low and demand is higher than ever. In the past year alone, there have been more homebuyers searching for homes and fewer homeowners looking to list their homes for sale under the current conditions and thus, the market has been tipped in the seller’s favor for some time now. One of the biggest challenges in the current real estate market is home inventory. In this article, we’ll go over the main reasons why finding a home for sale is becoming increasingly hard. Ready to Apply For a Home Loan in WA, OR, CO, or ID?ĭespite the high demand for homes, inventory is low and continues to below.Millennials Are Leading The Surge in The Purchase Market People Want Homes With More Square Footage
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