{"id":7157,"date":"2021-07-26T18:01:00","date_gmt":"2021-07-26T22:01:00","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7157"},"modified":"2021-07-26T18:01:00","modified_gmt":"2021-07-26T22:01:00","slug":"a-look-at-housing-supply-and-what-it-means-for-sellers","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7157","title":{"rendered":"A Look at Housing Supply and What It Means for Sellers"},"content":{"rendered":"
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\"A<\/p>\n

One of the hottest topics of conversation in today\u2019s real estate market is the shortage of available homes<\/a>. Simply put, there are many more potential buyers than there are homes for sale. <\/strong>As a seller, you\u2019ve 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\u2019s something that will change.<\/span><\/p>\n

While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can\u2019t 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\u2019s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.<\/p>\n

Where Did the Shortage Come From?<\/strong><\/h4>\n

It\u2019s not just today\u2019s 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<\/em><\/a>:<\/p>\n

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\u201cThe main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n

Data in a recent report<\/a> from the National Association of Realtors<\/em> (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 (see graph below<\/em>):\"A<\/a>The same NAR report elaborates on the impact of this below-average pace of construction:<\/p>\n

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\u201c<\/em>. . . the\u00a0underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years<\/strong>.\u201d\u00a0<\/em><\/p>\n

\u201cLooking 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<\/strong>, to more than 2 million housing units per year. . . .\u201d<\/em><\/p>\n<\/blockquote>\n

That means if we build<\/strong> even more new houses than the norm every year, it\u2019ll still take a decade to close the underbuilding gap <\/strong>contributing to today\u2019s supply-and-demand mix. Does that mean today\u2019s ultimate sellers\u2019 market<\/a> is here to stay?<\/p>\n

We\u2019re already starting to see an increase in new home construction<\/a>, which is great news. But newly built homes can\u2019t bridge the supply gap we\u2019re facing right now on their own. In the State of the Nation\u2019s Housing 2021 Report<\/em><\/a>, the Joint Center for Housing Studies of Harvard University<\/em> (JCHS) says:<\/p>\n

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\u201c\u2026Although part of the answer to the nation\u2019s housing shortage, new construction can only do so much to ease short-term supply constraints.<\/strong>\u00a0To meet today\u2019s strong demand, more existing single-family homes must come on the market.<\/strong>\u201d<\/em><\/p>\n<\/blockquote>\n

Early Indicators Show More Existing-Home Inventory Is on Its Way<\/strong><\/h4>\n

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

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\u201cIt looks like existing inventory is starting to inch up<\/strong>, which is good news for a housing market parched for more supply.\u201d <\/em><\/p>\n<\/blockquote>\n

Lawrence Yun, Chief Economist <\/em>at NAR, <\/em>echoes that sentiment:<\/a><\/p>\n

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\u201cAs the inventory is beginning to pick up<\/strong> ever so modestly, we are still facing a housing shortage, but we may have turned a corner<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

So, what does all of this mean for you?<\/em> Just because life is starting to return to normal, it doesn\u2019t mean you missed out on the best time to sell. It\u2019s not too late to take advantage of today\u2019s sellers\u2019 market<\/a> and use rising equity<\/a> and low interest rates<\/a> to make your next move.<\/p>\n

Bottom Line<\/strong><\/h3>\n

It\u2019s still a great time to sell. Even though housing supply is starting to trend up, it\u2019s still hovering near historic lows. Let\u2019s connect to discuss how you can list your house now and use the inventory shortage to get the best possible terms for you.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"AOne of the hottest topics of conversation in today\u2019s 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\u2019ve likely heard that low supply is good news for you. It means your house will get more attention, and [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,85,86,89,122,133],"tags":[],"class_list":["post-7157","post","type-post","status-publish","format-standard","hentry","category-blog","category-for-sellers","category-housing-market-updates","category-move-up-buyers","category-new-construction","category-selling-myths"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7157"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7157\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}