What is the housing shortage?
In the current housing market, it is more challenging than ever before to purchase a home. Early last year, there was already a housing shortage and then the health crisis hit, making buying a home even more difficult. Amongst the trials of the pandemic, many buyers wanted to take advantage of the low mortgage rates while sellers decided to wait to sell their homes until there was improvement. These two contributions from the buyers and sellers nationwide heavily contributed to the housing inventory shortage in the real estate market.
Realtor.com has produced new data highlighting how inventory of existing homes for sale has changed over the past year. The report highlights that inventory is 42.6% lower than it was at this time last year.
What does this mean for houses that are being put on the market?
There are currently fewer homes being listed which is contributing to the vastly competitive market. The homes are selling faster than they are being counted for inventory. Homes are actively being listed for sale in the market, but the supply can’t keep up with the rate of demand from the buyers.
Buyers have to make decisions quickly in order to purchase a home, with time on the market being 10 days faster than last year. Buyers can tailor their search and notifications to certain homes, helping them act quickly and compete successfully to find their dream home.
Bottom Line
Today’s housing market is favoring the sellers side but these conditions won’t last forever. If you are a buyer, contact a trusted real estate professional today to learn how to competitively bid in this market!
