What Forces Are Driving the Housing Market?

Recently, you may have seen reports on realtor.com that a record-low number of homes are available for sale—roughly 1.03 million nationwide. If you compare that to the average number of homes for sale during the past 10 years, it’s no surprise that many hopeful homebuyers are having issues securing a home.  There’s a few reasons for that.

Lack of inventory. There are a few major differences between 2007 and now, however, but the biggest difference? What we’re seeing now isn’t a bubble; it’s simply a lack of inventory.  There just aren’t enough houses to satisfy the number of buyers.

It’s a seller’s market. In many ways, this may be the most friendly market we’ve seen in quite a while for home sellers. Right now, according to axios.com, nearly half of homes are selling within roughly a week or less. At the same time, median prices are rising at a phenomenal rate, and national prices, in general, have increased 17.2 percent over last year.  Just ask someone you know who is trying to buy a house right now.  The stories are all the same.  Losing out on houses to cash offers where they are waiving inspections.  They are also willing to pay the difference if the house doesn’t appraise at the necessary amount.

Why now? Listings are skyrocketing for a number of reasons. Many experts believe the continued low mortgage rates, a pandemic-era construction slowdown, and an increase in money available for a down payment are all factors.

In this hyper-competitive market, many people are thinking of taking advantage of the situation by listing a property or home. If this sounds like you, give our office a call. We may be able to put you in touch with a housing professional who can offer some guidance and support.

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