{"id":1901,"date":"2021-07-27T20:50:51","date_gmt":"2021-07-27T20:50:51","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1901"},"modified":"2021-07-27T20:50:51","modified_gmt":"2021-07-27T20:50:51","slug":"look-housing-supply-means-sellers","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/look-housing-supply-means-sellers\/","title":{"rendered":"A Look at Housing Supply and What It Means for Sellers"},"content":{"rendered":"
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Construction framed timber in Adelaide, Australia<\/p><\/div>\n

One of the hottest topics of conversation in today\u2019s real estate market is the\u00a0shortage of available homes<\/a>.\u00a0Simply put, there are many more potential buyers than there are homes for sale.\u00a0<\/strong>As a seller, you\u2019ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that\u2019s something that will change.<\/p>\n

While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can\u2019t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let\u2019s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.<\/p>\n

Where Did the Shortage Come From?<\/strong><\/h4>\n

It\u2019s not just today\u2019s high buyer demand. Our low supply goes hand-in-hand with the number of new homes built over the past decades. According to Sam Khater, VP and Chief Economist at\u00a0Freddie Mac<\/em><\/a>:<\/p>\n

\u201cThe main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.\u201d<\/em><\/strong><\/p><\/blockquote>\n

Data in a\u00a0recent report<\/a>\u00a0from the\u00a0National Association of Realtors<\/em>\u00a0(NAR) tells the same story. New home construction has been lagging behind the norm for quite some time. Historically, builders completed an average of 1.5 million new housing units per year. However, since the housing bubble in 2008, the level of new home construction has fallen off (see graph below<\/em>):<\/p>\n

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Residential Units Completed<\/p><\/div>\n

The same NAR report elaborates on the impact of this below-average pace of construction:<\/p>\n

\u201c<\/em>. . .\u00a0the\u00a0underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years<\/strong>.\u201d\u00a0<\/em><\/p>\n

\u201cLooking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the next 10 years, while accounting for historical growth,\u00a0new construction would need to accelerate to a pace that is well above the current trend<\/strong>, to more than 2 million housing units per year. . . .\u201d<\/em><\/p><\/blockquote>\n

That means\u00a0if we build<\/strong>\u00a0even more new houses than the norm every year, it\u2019ll still take a decade to close the underbuilding gap\u00a0<\/strong>contributing to today\u2019s supply-and-demand mix. Does that mean today\u2019s ultimate\u00a0sellers\u2019 market<\/a>\u00a0is here to stay?<\/p>\n

We\u2019re already starting to see an increase in\u00a0new home construction<\/a>, which is great news. But newly built homes can\u2019t bridge the supply gap we\u2019re facing right now on their own. In the\u00a0State of the Nation\u2019s Housing 2021 Report<\/em><\/a>, the\u00a0Joint Center for Housing Studies of Harvard University<\/em>\u00a0(JCHS) says:<\/p>\n

\u201c\u2026Although part of the answer to the nation\u2019s housing shortage, new construction can only do so much to ease short-term supply constraints.<\/strong>\u00a0To meet today\u2019s strong demand, more existing single-family homes must come on the market.<\/strong>\u201d<\/em><\/p><\/blockquote>\n

Early Indicators Show More Existing-Home Inventory Is on Its Way<\/strong><\/h4>\n

When we look at existing homes, the latest reports signal that\u00a0housing supply is growing<\/a>\u00a0gradually month-over-month. This uptick in existing homes for sale shows things are beginning to shift. Based on recent data,\u00a0Odeta Kushi<\/a>, Deputy Chief Economist at\u00a0First American<\/em>, has this to say:<\/em><\/p>\n

\u201cIt looks like\u00a0existing inventory is starting to inch up<\/strong>, which is good news for a housing market parched for more supply.\u201d<\/em><\/p><\/blockquote>\n

Lawrence Yun,\u00a0Chief Economist\u00a0<\/em>at NAR,\u00a0<\/em>echoes that sentiment:<\/a><\/p>\n

\u201cAs the\u00a0inventory is beginning to pick up<\/strong>\u00a0ever so modestly, we are still facing a housing shortage, but\u00a0we may have turned a corner<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

So, what does all of this mean for you?<\/em>\u00a0Just because life is starting to return to normal, it doesn\u2019t mean you missed out on the best time to sell. It\u2019s not too late to take advantage of\u00a0today\u2019s sellers\u2019 market<\/a>\u00a0and use\u00a0rising equity<\/a>\u00a0and\u00a0low interest rates<\/a>\u00a0to make your next move.<\/p>\n

Bottom Line<\/strong><\/h3>\n

It\u2019s still a great time to sell. Even though housing supply is starting to trend up, it\u2019s still hovering near historic lows. Let\u2019s connect to discuss how you can list your house now and use the inventory shortage to get the best possible terms for you.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h5>\n","protected":false},"excerpt":{"rendered":"

One of the hottest topics of conversation in today\u2019s real estate market is the\u00a0shortage of available homes. Finish Reading A Look at Housing Supply and What It Means for Sellers<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,10,18,27,25,66,49,42,382,376,12,48,108,47,19,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1901"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1901"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1901\/revisions"}],"predecessor-version":[{"id":1905,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1901\/revisions\/1905"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}