We have a severe challenge in front of us in America’s housing market. The challenge is that there is a very severe lack of housing inventory available. How big of a challenge is this? Well, here’s what four industry experts have to say about the issue.
The first says that we have an overwhelming lack of supply. He goes on to state that the supply of new construction is also lagging behind demand. Then to add to the lack of supply, in the past 8 years, demand for housing has increased by 5.9 million units. However, only 3.5 million new housing units have been built.
The next one goes on to say then even though everyone has been talking about a lack of inventory, he thinks that it has moved from a lack of inventory to a severe crisis. And that they are just not enough homes for everybody who needs one.
The third expert is saying that housing prices for today have exceeded the housing prices at the peak of the market in 2006. Near record-low mortgage rates have brought more buyers into the market, increasing demand. And sales volume is good, there are just not enough houses for sale.
And the last expert states that houses in the affordable price range are selling very quickly. But with the severe shortage of inventory, potential buyers are not be able to find a home.
So how does this affect you?
Well the housing market needs more inventory, so for the sake of the economy you need to sell your house. And the good news is that due to lack of inventory and soaring demand, you will probably be able to sell your home quickly and for a great price.
The bad news though is this. You will need to find a house to live in yourself. And the buyers that are out there now are facing challenges in finding a home. And if you sell yours, you’ll be same facing the same type of challenges when you go looking for your new place to live.
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