What’s the deal with the housing shortage?
You’ve heard there’s a housing shortage but why? How long will it last? Can you still manage to buy a home? Don’t fret, we’re here to give you the information you need.
First off – WHY is there a shortage?
There are many factors to the “why” however here are a few of the key ones:
- New constructions haven’t kept up with demand for years. The Great Recession led to the unfortunate end to many construction companies and the Millennial Generation was expected to be a generation of renters.
- Surprise, the largest generation of Americans in history, Millennials, are in their prime household formation years – and they’re buying.
- The pandemic led to labor shortages and supply chain disruptions.
- There’s a low supply of homes for sale.
- Real Estate isn’t just a means to housing, renting out homes is also a revenue stream – thus, many homes that do hit the market will become investment properties.
Secondly, how do you buy in this competitive market?
Preparation is key. The first thing you should do before looking at homes is to get pre-approved by a lender. Of course, that’s exactly what we would say but we swear it’s not biased advice. Here’s the deal: before you fall in love with a home and are willing to buy it no matter what it takes it’s important to know your options, what can give you an advantage, and how it can affect you in the long term. The pre-approval process doesn’t just let you know how much you can feasibly and responsibly spend on a home but it also allows your Loan Officer to suggest ways to improve your finances, seek out grants, go over loans that fit you and your circumstances, and so much more. Especially in a competitive time, you need a team that supports you. Rushing into a home loan with the wrong lender can affect you for the rest of your life. We hope you’ll give one of our qualified Loan Officers the opportunity to be the team that supports you. You can find your team here: https://gohomeside.com/find-a-loan-officer/
Lastly, what’s the future look like?
Okay – we can’t actually see into the future but we do love statistics and data that can help us predict what happens next. Realtor.com’s Spring 2022 Home Sellers Report is here to guide those predictions. Here’s what you need to know:
- Over two-thirds of homeowners planning to sell in 2022 are likely to list by August. This means that there could be some relief in the inventory shortage this Spring and Summer.
- 80% of homeowners sold at or above their original asking price. This is why it is so imperative to be sure that you have a solid handle on your finances and what you can spend.
- 43% of homeowners planning to sell in 2022 expect prices of $350,000 and below. If affordability is a worry for you, almost half of the homes coming to the market could be just what you’re looking for.
Ready to get prepared for your homebuying journey? Find a qualified loan officer by clicking here!