When looking at macroeconomic phenomena, it can feel like you are unraveling an enormous knot. What is causing what? What is influencing X to create Y?
Driving around town or walking the dog, For Sale signs are going up and down across America’s streets in the suburbs and cities. It can feel like there are a lot of homes on the market. Sometimes feelings are deceiving.
“We should have almost four million more housing units if we had kept up with demand the last few years,” reported chief economist at Freddie Mac, Sam Klater. “This is what you get when you underbuild for 10 years.”
This red hot market is caused by a supply shortage of homes.
Why aren’t there enough homes on the market? The economist from Freddie Mac elaborated that it isn’t landlord investors owning and renting out single family residences or even last year’s pandemic eviction moratorium that is placing constraints on supply. Home builders have not kept up with home buyer demand. Fox Business reports, “Home-building activity has been subdued since the 2007-09 recession, when many builders went out of business.”
What does that mean for you?
1. Selling your home means a frenzy of activity, showing requests, and offers especially if you live in a popular neighborhood or are listing at an attractive price point
2. Calibrate your expectations in searching for a home to be disappointing, having an offer rejected, or continuing to search for longer than you would have had to 5 years ago
3. It is more important than ever to have a full-time real estate professional representing you so that you have an advocate working hard for you