The biggest challenge in today’s real estate market is a lack of housing inventory. How big of a challenge is the housing shortage? Here are what four industry economists are saying on the issue (emphases added):
“The underlying fundamental issue is an overwhelming lack of supply… The supply of newly constructed homes is also sagging, adding to the supplychallenges. Over the last eight years, housing demand has increased by 5.9 million, but the net new number of housing units has only increased by 3.5 million.”
“Everyone has been talking about tight inventory but I think we are OK calling it a straight up inventory crisis at this point. We just don’t have enough homes.”
“House prices today are higher than they were at the peak in the summer of 2006, near-record-low mortgage rates have boosted housing demand, and sales volume is robust. The spoiler is the lean inventory of houses for sale.”
“Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”
If you are considering selling your house soon, now may be the time to get it on the market. The lack of competition could lead to a faster sale at a higher price.
The 5 Greatest Benefits of Homeownership
- Homeownership can help you build equity over time.
- Your monthly payments will remain stable.
- You may have some tax benefits.
- You can take pride in ownership.
- Homeownership improves your community. Home Buying Process
Let’s expand on each of Freddie Mac’s points: Home Buying Process
Three Steps For Locating And Purchasing Your Perfect New Home
Are you considering buying a new home? Maybe you’ve checked out a couple of houses or found a new home you’re already interested in. Don’t rush straight into buying a new home though, as there are a few crucial factors you need to take into consideration before you sign the dotted line and head to your closing. Home Buying Process
Purchasing a home requires plenty of research – after all this will be where you live for a large part of your life. Before you dive into buying a new home you need to make sure you understand the process exactly. Here’s the three step process that every buyer should follow. Home Buying Process
1. Locate and discover
The process of buying a house usually will occur organically and more often than not it will begin around a year or more prior to the actual purchase of the home. To start off you will view different home listings on the internet to see which types of homes are available in the different price ranges. Location is certainly something you need to take into consideration not only for the surrounding environment and scenery, but also for the value. For example you can buy a 4 bedroom house in one specific area for the same price as a 1 bedroom flat in another area. You should begin with searching for homes in some of your favorite neighborhoods. Look at the reports on home values and review the statistics. After doing this you should start to piece together a list of priorities to narrow down your search. The majority of buyers will identify a property in this stage which prompts them to quickly move onto the next stage in the process. Home Buying Process