Why Your House Will Shine in Today’s Market

Why Your House Will Shine in Today’s Market

Even though there are more homes available for sale than there were at this time last year, there are still more buyers than houses to choose from. So, if you’re considering a move, know that your house can truly stand out.

There are several key reasons why there aren’t enough homes to meet demand, and understanding these factors will help you see why the market is favorable if you’re ready to make a move.

What’s Causing the Shortage?

1. Underproduction of Homes: For years, the industry has not built enough homes to keep pace with demand. As Zillow explains:

“In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.”

2. Rising Costs: Building materials, labor shortages, and supply chain disruptions caused by the pandemic have all contributed to making it harder and more expensive to construct homes. This has the effect of either limiting or halting new home construction in certain areas.

3. Regional Imbalances: Some markets are more significantly impacted by the shortage of homes than others. In popular and desirable areas, more people are moving in faster than new homes can be constructed. The number of new building permits issued doesn't always match job growth in these regions, resulting in even tighter markets and higher prices.

How Big Is the Problem?

According to estimates from Real Estate News, the U.S. is experiencing a housing shortfall of approximately 3.3 million homes, based on an average of various expert insights (see graph below):

This indicates that a substantial number of homes need to be constructed just to meet the current demand from buyers. But what about future demand?

According to John Burns Research and Consulting (JBREC), the U.S. will require approximately 18 million new homes over the next 10 years to meet projected demand, which includes homes for new households, second homes, and replacements for aging or unusable properties.

So, even though there are more homes on the market compared to last year, there still aren’t enough to satisfy demand. This presents a significant opportunity for you if you’re ready to sell your house.

What You Need To Remember

If you’re considering selling, the current shortage of homes for sale means your house is likely to attract significant attention from buyers. It will take years to recover from this inventory deficit, and the market remains very tight. When buyers compete for the relatively few homes available, it generates increased interest in the properties on the market, driving up prices and ultimately benefiting you.

Since every market is unique, it’s crucial to work with a real estate agent who understands local trends. They can assist you in pricing your house appropriately and developing a strategy to attract the right buyers.

Bottom Line

While there are more homes for sale compared to this time last year, there is still an overall shortage. This positions you advantageously as a seller. Let’s connect so you have someone to help you capitalize on today’s market.