Even though the number of homes for sale has increased slightly from last year, buyer demand still outpaces the available listings. So, if you’re considering selling, now is a fantastic time to make your home shine and capture buyers’ attention.
Here’s why the market is stacked in your favor – and why a lack of inventory might just make your home the star attraction.
What’s Fueling the Housing Shortage?
- Decade of Underproduction: For years, the housing industry hasn’t kept up with demand. According to Zillow, “In 2022, 1.4 million homes were built – a high point since the Great Recession. But with 1.8 million new U.S. families that same year, we didn’t just fall short; we added to a housing deficit that’s been growing for more than a decade.”
- Increasing Costs: The cost of building materials, labor shortages, and pandemic-related supply chain disruptions have made new home construction tougher and more expensive. This has slowed down or halted new projects in some areas, adding to the supply challenge.
- Regional Demand Imbalance: Certain markets – especially in popular, high-growth areas – face even tighter supply issues. In these regions, new building permits haven’t kept up with job growth, creating a steeper shortage and pushing prices higher as more people look to move in than new homes can accommodate.
The Scope of the Shortfall
Real Estate News estimates the U.S. faces a housing shortfall of about 3.3 million homes. As John Burns Research and Consulting (JBREC) projects, the demand will require 18 million new homes over the next decade to meet future housing needs, including new household formations, second homes, and replacement of outdated properties.
So, while there may be more homes on the market this year, the demand is still strong, and there simply aren’t enough homes available to meet it. If you’re thinking about selling, this shortage means there’s likely a strong pool of eager buyers waiting for a property like yours.
Key Takeaways
If you’re planning to sell, a low inventory of homes for sale means that your property is primed to attract significant interest from buyers. With the current market conditions, competition among buyers is intense, which can drive higher offers and work in your favor.
Each market varies, so partnering with a knowledgeable real estate agent who understands your local area can help you price your home strategically and effectively market it to attract the right buyers.
Even with more homes available now than last year, there’s still an overall shortage that gives you, as a seller, a strong advantage. Let’s connect so you have expert guidance to make the most of today’s market conditions.
