Here are two reasons for our low inventory and what that means for you.
Why is it so hard to find a house to buy? Well, we are in an extreme seller’s market right now. More people are looking for homes than there are homes for sale, so real estate is very competitive for buyers. While low inventory isn’t new, it’s been a continuing challenge. Here are two reasons why today’s supply is low and what that means for you:
1. New home construction fell behind. The level of new construction has fallen off for the last 13 years. Builders couldn’t meet the historical average, and the underbuilding left us with a multi-year inventory deficit going into the pandemic.
2. The pandemic impacted the housing market. When the pandemic hit, it fueled a renewed appreciation of and focus on the meaning of home. It became more important to have a secure place to live, exercise, and work. Then, mortgage rates dropped below 3%, and buyers entered the market looking to capitalize on that. Meanwhile, sellers were hesitant to put their homes on the market because of the pandemic, and this caused supply to drop even further.
“Patience will be the key to success for buyers this year.”
For buyers, low inventory can be challenging. You want to find your dream home, not settle for a worse one. What if there simply aren’t enough homes, though? Luckily, some experts project that more homes will soon become available thanks to sellers re-entering the market. Inventory will still be below pre-pandemic levels, but you shouldn’t put your plans on hold for additional houses.
Stick to your search, and work through the low inventory. You can find your dream home if you are patient. Remember that your trusted real estate advisor is your best source of support in this low inventory market.
Patience will be the key to success for buyers this year. Let’s connect to talk about what’s going on in our area, what homes are available, and why it’s important to keep searching. If you have any questions about selling, buying, or trading up, feel free to call us anytime at (602) 920-0306. We would love to hear from you.
