Use better software – Make Life Easier!
Everything you need in one place at the lowest cost…anywhere.
Click HERE to see how easy a loan origination can be.
Where Did All the Houses Go? How Low Inventory is Impacting Home-buyers
The typical U.S. homeowner has spent 11.9 years in their home, up from 6.5 years two decades ago, according to a new report from Redfin. Homeowner tenure peaked at 13.4 years in 2020. This lack of housing turnover is creating an inventory shortage in the real estate market.
With homeowners staying put longer, fewer homes are coming onto the market. Yet demand remains high, as millennials look to become homeowners and baby boomers downsize. This supply-demand imbalance favors sellers, who are receiving multiple offers and selling faster than just a few years ago.
For buyers, the low inventory makes finding a home more difficult. They are often forced to bid over asking price or waive contingencies to be competitive. First-time home-buyers eager to stop renting are often priced out in this seller’s market.
The inventory shortage also hurts investors, who are competing to acquire affordable homes. Investors purchased a record 26.1% of lower-priced homes in Q4 2021, up from 24% a year earlier. This reduces affordable housing stock even further.
To improve home-ownership accessibility, policies limiting corporate purchases of single-family homes could help. This would keep more starter homes in the hands of owner-occupants rather than investors.
In our high-demand, low-supply market, patience and persistence are key for buyers. Sellers should move quickly when the right offer comes in. And policymakers need to address the systemic issues limiting new construction and affordable housing. Working together, we can create more ownership opportunities.
Link to Dr. David Martin’s address to the International Covid Summit hosted by the European Parliament: https://youtu.be/mfLycFHBsro?si=NTwwwqr1VR7u5DjW
Watch More
