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Low home inventory12/23/2023 After the housing crash, many builders went out of business. The pandemic accounts for several factors, namely the record low interest rates on mortgages, more people leaving cities for the suburbs, and more people wanting to find more space while working (and educating) at home.Įven before the pandemic, though, inventory has been dwindling. Sure, the pandemic is a key player in the low real estate inventory saga. In essence, the pandemic created a bottleneck in the real estate pipeline that could take years to get moving again. More people are waiting to move, staying put until the pandemic is over. But no one wants to move their elderly parents into assisted living during a health crisis that impacts older adults disproportionately. This process frees up homes for middle-aged buyers who have children of their own and need the larger space. The pandemic also disrupted the “real estate ladder.” That is, inventory depends on housing turnaround, namely retirees selling larger homes and downsizing or moving into assisted living communities. While many of those issues have now subsided, new construction isn’t keeping up with the demand. The pandemic caused labor shortages and supply issues, leading to far fewer home starts last year. The national average is about 43% lower than this same time last year – meaning there are far fewer houses, but plenty of buyers vying for available properties. Recent data from shows dramatically reduced inventory in every state across America. While the market is ideal for sellers, home buyers are having a difficult time finding properties. Many buyers – and their agents – are frustrated as they try to find homes for sale. Many of us began spending all our time at home – and many of us decided we needed more space.Īs we enter what is traditionally the busiest season for home sales, there is low real estate inventory. However, summer brought a surprising boost in real estate sales, thanks mainly to dropping interest rates and the demand for more space. The Coronavirus pandemic created panic, causing many homeowners to rethink their plans to sell. Last spring started with a frightening stall in the economy as real estate transactions came to a halt. The real estate market is HOT going into the spring and summer seasons. How can Realtors navigate this fast-paced environment when homes are hard to find? And how can buyers scoop up the perfect home when low real estate inventory threatens to make it next to impossible? Real Estate is Booming in 2021 ![]() Since rebounding in Summer 2020, the market exploded, and now we are facing a new problem: low real estate inventory in nearly every major city in the United States. It’s a big change from Spring 2020 when uncertainty and fear of a then-unknown virus brought the housing market to a near-standstill. ![]() Share on Twitter Share on Facebook Share on Pinterest Share on LinkedInĪ year into the COVID-19 pandemic, the residential real estate market is booming.
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