Have you been eyeing the real estate market lately, either as a potential buyer or just out of interest? If so, you’ve probably noticed a pretty big challenge: there just aren’t enough homes available. But why is that?
Understanding the Seller’s Market
We’re currently navigating a strong seller’s market, primarily due to an imbalance between supply (homes for sale) and demand (eager buyers). In our area, this mismatch has led to a situation of low inventory, tipping the scales in favor of sellers. But what’s behind this shortage? Let’s break it down:
Delayed New Builds: The global pandemic threw a wrench in supply chains, causing significant delays in home construction. Many builders are still playing catch-up, leading to a slower supply of new homes than usual.
Historically Low Mortgage Rates: During 2020-2022, mortgage rates were at record lows. This led to a home-buying boom, with many securing loans at these low rates. As a result, homeowners are reluctant to sell and lose their favorable rates, contributing to fewer homes on the market.
Increased Homeownership Tenure: The trend of how long people stay in their homes has shifted. From 1985 to 2009, the average was about 6.1 years. Post-2010, this has jumped to around 9.3 years. With fewer people moving, there’s a natural decrease in available homes.
These factors combined have created the current shortage and the seller’s market we’re experiencing. But don’t let this discourage you if you’re a buyer. Navigating this market can be tricky, but that’s where we step in.
Ready to Brave the Market? Let’s Talk!
Navigating a seller’s market can feel daunting, but with the right guidance, securing your dream home is still within reach. If you’re ready to discuss strategies for success in this competitive market or have any questions, don’t hesitate to reach out. Sallis Realty Group is here to support you every step of the way, from understanding market dynamics to closing the deal on your perfect home.
Contact us today, and let’s turn your home-buying dreams into reality!
Source: https://keepingcurrentmatters.com/2023/09/29/explaining-todays-low-housing-supply-infographic/