Understanding the current housing shortage

As the 2021 real estate boom continues with bidding wars and record-selling prices, it’s common to wonder how we got to this point. The pandemic and lockdown forced us to accept personal changes that we weren’t expecting. Though hardships were plenty many people came to realize that not all of the changes were negative. Working and learning from home helped us to find balance in our lives, and some began seeking new homes that were better equipped to help us embrace this new lifestyle. Others sought new homes to accommodate growing families.

For-sale signs started popping up here and there. People were eager to find their dream home, only to be disappointed when offers were rejected. Houses were frequently sold within hours of listing, and disillusioned buyers couldn’t seem to catch a break!

But there’s much more to the story. The upheaval of the past year has shed light on a problem that’s been brewing for years. The housing crash of 2008 had a tremendous impact on the construction industry, resulting in a significant reduction in new home construction. This trend has continued for more than a decade, creating an inventory shortage of hundreds of thousands of units per year. By 2020, this resulted in an estimated shortage of 3.8 million houses, according to Freddie Mac.

While the real estate market will eventually level off, it may take longer for the construction industry to catch up with demand. In the meantime, buyers can work closely with their agents to help them understand and navigate these obstacles.

-Insights on Real Estate

Don’t Stop Here

More To Explore

3 Trends That Are Good News for Today’s Homebuyers

While higher mortgage rates are creating affordability challenges for homebuyers this year, there is some good news for those people still looking to buy a home. As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may benefit you

Read More »

Two Questions Every Homebuyer Should Ask Themselves Right Now

Rising interest rates have begun to slow an overheated housing market as monthly mortgage payments have risen dramatically since the beginning of the year. This is leaving some people who want to purchase a home priced out of the market and others wondering if now is the time to buy one. But this rise in borrowing cost shows no

Read More »

Why It’s Still a Sellers’ Market

As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to sell your house. If you’re thinking of making a move, you should know the market is still anything but normal. Even though the supply of homes

Read More »

Housing Experts Say This Isn’t a Bubble

With so much talk about an economic slowdown, some people are asking if the housing market is heading for a crash like the one in 2008. To really understand what’s happening with real estate today, it’s important to lean on the experts for reliable information. Here’s why economists and industry experts say the housing market is not a bubble ready to pop.

Read More »

If You’re Selling Your House This Summer, Hiring a Pro Is Critical

It can be tempting, especially with how hot the housing market has been over the past two years, to consider selling your home on your own. But today’s market is at a turning point, making it more essential than ever to work with a real estate professional. Not only will a trusted real estate advisor keep you updated

Read More »

Where Are Mortgage Rates Headed?

There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by Mark Fleming, Chief Economist at First American: “You know, the fallacy of economic forecasting is: Don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”

Read More »

LOGIN

Not a member? Sign up!

LETS START YOUR HOME BUYING JOURNEY!