The Housing Market Inventory is just about to get better.
Here’s why.
This is one of the most controversial topics I have to cover this year because in part it is true. If you have been following the real estate news all through the year, two things must have come out clearly to you already. First, inventory is tight, there is no activity in new construction and some regions are suffering more than others. Take an example of California, New York, or New Jersey which are some of the markets that have recorded a high ‘hemorrhage’ of people due to high real estate prices. Second, there is a cloud of optimism with so many experts arguing that the housing market is about to get better, especially in the markets that have high real estate prices.
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oday, the prices for new and existing homes are at a record high and the demand is still skyrocketing. The rates are relatively low which partly explains why people are in a hurry to buy. Going by the data from Zillow, homes are staying on the market for an average of 6 days only nationally marking quite a remarkable turnaround. However, how stiff the competition is and the need to supply more homes, otherwise, this is only the beginning of prices soaring beyond anything we’ve ever seen.
only added to the thirst for new homes. Plus, there’s also the fear that if people do not buy now, they might be locked out for while before such opportunities present themselves again in the future. All these market conditions seem to favor one particular group of people, the majority of the millennial of whom are just reaching the prime buying years. As such, going forward, we should be expecting a sky-high demand for new homes which presents a set of new challenges for the federal government and the states alike.
There are a few factors that have led to this phenomenon. The first and perhaps the most obvious one is the Covid-19 pandemic which has accelerated the home buying process for most people. Earlier, we mentioned in a previous article that homes have never been this important. In addition to that, the historically low-interest rates
KEEPING UP WITH THE DEMAND This is a giant issue that we have to face altogether. For a long time now, we have focused on the millennials forgetting the Gen-Zers whose older members are now 24 years old and ready to become a homebuyer. The demand might quadruple in the next 5 years, which is why we
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THE POWER IS NOW MAGAZINE | AUGUST 2021
