Not an easy question to answer, and there are multiple answers. And none of them provide the full picture. But here are some of the reasons that there are so few homes available.
There is not enough new construction to meet demand.
Builders are simply not able to find enough vacant land in the areas that people want to live in. And when they do, all too often the land is so expensive that they cannot afford to build starter level homes. They cost of the land forces them to build expensive, large homes. And without starter homes, the first time buyers cannot buy. Then those sellers cannot buy a nicer home, and this goes right up the line. It all starts with the first time buyer.
Some people cannot afford to sell.
Many home owners purchased their homes 10 – 20 years ago, when home prices were at the peak. Then the market crashed. And many still owe more than the home is worth. This means they cannot sell unless they have enough cash to pay off the difference. The good news? More home owners have positive equity than they did ten years ago.
People are not selling their homes as often as they did in the past.
The average person used to move every six to seven years. Now the average person stays in their home for over nine years.
Baby Boomers – many are not quite ready to retire. And many want to stay in their homes until they do. Why move, only to move again in a few more years?
These are a few reason, stay tuned. I may write another blog post with more reasons. In the meantime, you should visit our web sites, www.BunnyandArt.com www.55PlusInOcean.com www.55PlusinMonmouth.com . You’ll find more blog posts to read, you can search for a new home, or find out what your present home may be worth. And when you are ready, call us – Bunny and Art Reiman, at 732-598-7700. We can help you sell your home and find that perfect new one!