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20 • COMMUNITY ADVOCATE • Friday, August 6, 2021 HOMES MORE&

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A Look at Housing Supply and What It Means for Sellers

By, Elaine Quigley, Broker

One of the hottest topics of conversation in today’s real estate market is the shortage of available homes. Simply put, there are many more potential buyers than there are homes for sale. As a seller, you’ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that’s something that will change.

Elaine Quigley, CBR, CRS, GRI

Elaine.Quigley @commonmoves.com Cell: (508) 735-5161 www.EQRE.com

Commonwealth Real Estate

While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can’t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let’s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.

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Where Did the Shortage Come From?

It’s not just today’s high buyer demand. Our low supply goes hand-in-hand with the number of new homes built over the past decades. According to Sam Khater, VP and Chief Economist at Freddie Mac: “The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”

Data in a recent report from the National Association of Realtors (NAR) tells the same story. New home construction has been lagging behind the norm for quite some time. Historically, builders completed an average of 1.5 million new housing units per year. However, since the housing bubble in 2008, the level of new home construction has fallen off. The same NAR report elaborates on the impact of this belowaverage pace of construction: “. . . the underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years.”

“Looking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the next 10 years, while accounting for historical growth, new construction would need to accelerate to a pace that is well above the current trend, to more than 2 million housing units per year. . . .”

That means if we build even more new houses than the norm every year, it’ll still take a decade to close the underbuilding gap contributing to today’s supply-and-demand mix. Does that mean today’s ultimate sellers’ market is here to stay?

We’re already starting to see an increase in new home construction, which is great news. But newly built homes can’t bridge the supply gap we’re facing right now on their own. In the State of the Nation’s Housing 2021 Report, the Joint Center for Housing Studies of Harvard University (JCHS) says:

“…Although part of the answer to the nation’s housing shortage, new construction can only do so much to ease shortterm supply constraints. To meet today’s strong demand, more existing single-family homes must come on the market.”

Early Indicators Show More Existing-Home Inventory Is on Its Way

When we look at existing homes, the latest reports signal that housing supply is growing gradually month-overmonth. This uptick in existing homes for sale shows things are beginning to shift. Based on recent data, Odeta Kushi, Deputy Chief Economist at First American, has this to say:

“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”

Lawrence Yun, Chief Economist at NAR, echoes that sentiment:

“As the inventory is beginning to pick up ever so modestly, we are still facing a housing shortage, but we may have turned a corner.”

So, what does all of this mean for you? Just because life is starting to return to normal, it doesn’t mean you missed out on the best time to sell. It’s not too late to take advantage of today’s sellers’ market and use rising equity and low interest rates to make your next move.

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It’s still a great time to sell. Even though housing supply is starting to trend up, it’s still hovering near historic lows. Let’s connect to discuss how you can list your house now and use the inventory shortage to get the best possible terms for you.

Call me today. 508-7355161. My extensive knowledge and expert guidance will enable you to achieve all of your real estate goals. Elaine.Quigley@ commonmoves.com

COMMUNITY NEWS Northborough receives funds to remove dam

The Northborough Reservoir Dam sits near Reservoir Street and I-290.

PHOTO/DAKOTA ANTELMAN

Northborough church to host electronic recycling event

By Dakota Antelman Managing Editor NORTHBOROUGH - Northborough will receive state funding to help begin the process of removing an aging dam on the Northborough Reservoir.

The town will receive $168,750 through the Executive Office of Energy and Environmental Affairs’ Dam and Seawall Program. This will help fund the design and permitting portion of the dam removal effort.

Northborough has been ordered to either remove or repair the dam after the state identified it as being in poor condition.

The dam holds back the Northborough Reservoir, which is actually located just outside of Northborough, near the Shrewsbury and Boylston town-line. It had helped control Northborough’s water supply by funneling water through an aqueduct.

The town switched water supplies in the 1950s, though. During a Board of Selectmen meeting last month, Department of Public Works Director Scott Charpentier said the dam no longer serves a useful purpose.

With its evaluation of the structure, the state’s Office of Dam Safety has determined that the dam could threaten downstream properties if it failed.

A total of $17.3 million was awarded to municipalities across the state for them to address their failing coastal infrastructure, levees and dams, according to a press release from Gov. Charlie Baker’s office.

Baker said the grants would help the municipalities make “substantial” progress to maintain and repair the structures.

“The Commonwealth’s cities and towns are seeing the impacts of climate change every day, and our administration is committed to providing needed funding to support critical resilience projects to addresses these issues,” Baker said.

The design and permitting process will take between 18 and 24 months. From there, removal will begin, costing upwards of $1 million, officials said back in June.

The town is hoping to pull in additional grant funding for that stage of the project.

NORTHBOROUGH - Do you have old electronics or appliances that need to be recycled?

The First Parish Northboro Unitarian Universalist, which is located at 40 Church Street, will be hosting an electronics recycling event on Aug. 21 from 9 a.m. to 2 p.m.

The event will be held rain or shine and is open to everyone.

The recycling event will be held in the church’s parking lot.

Cell phones, bicycles, vehicle batteries, yard equipment batteries, household and laptop batteries, keyboards, wires, cables and tablets will be accepted free of charge.

There will be a cost for recycling other items, ranging between $5 and $40. Cash is preferred, but checks will be accepted for payments over $30.

For more information, contact GreenDayRecyclingMA@gmail.com.

PHOTO/LAURA HAYES

The First Parish Northboro Unitarian Universalist Church is located at 40 Church Street.

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