Why Is It So Hard Bo Buy a House ?
The dilemma many home are facing this year is merely a lack of inventory, which makes the market super competitive and very difficult to find a home right now. Nationwide homes are getting an average of 4.8 offers per sale.
Danielle Hale, Chief Economist at realtor.com, explains:
“The housing market is still relatively under supplied, and buyers can’t buy what’s not for sale. Relative to what we saw in 2017 to 2019, March 2021 was still roughly 117,000 new listings lower, adding to the pre-existing early-year gap of more than 200,000 fresh listings that would typically have come to market in January or February. Despite this week’s gain from a year ago, we’re 19 percent below the new seller activity that we saw in the same week in 2019.”
The main reason for the lack of inventory is the lack of long term decline in the construction of new "entry-level" single-family homes, what we consider to be starter homes.
The national housing market was already experiencing a supply shortage prior to the 2020 COVID-19 pandemic.
The number of newly built homes is disproportionately lower than the rate of household formation. Freddie Mac estimates that we will need to build close to 4 million homes to meet the current demand.
If you’re planning to buy a house this year, the key to success will be patience, given today’s low inventory environment.
Contact a local real estate professional today to learn more about what’s happening in your area. If you need assistance in the Ventura County area, we are just a call away! We can be reached at 805-857-5811