LOW HOUSING SUPPLY

Homebuyers, are you wondering what is causing the low housing inventory in your area?  

Over this last year, the housing market has experienced lower-than-normal inventory levels. So why is this?

It is a combination of three factors coming together at the same time to create this scenario. Lack of Building over Time: For the last 14 years, builders did not construct enough homes which has caused a long-standing shortage of new homes. Total new homes built over the last 14 years have been below the 52-year average. 

Mortgage Rates: Some homeowners who are locked in with low mortgage rates do not want to sell and get into a higher mortgage rate. This means fewer existing homes are coming into the market. 

And finally, People are just not moving. Today’s data is showing folks are just not moving as quickly anymore. Since 2010, data shows people are living in their houses longer for an average of nine-plus years versus six years prior to 2010. Combining all of these factors together creates a low housing supply. 

But with all that said, real estate agents know exactly where to look in their local area to still make your home-buying dream a reality. We are experts in the market. Don Pelletier here. If you are a homeowner thinking of listing your property, please reach out to my team and I to go over all the latest housing data to put you in the best position to sell.