Will inventory go up soon is the big question in today’s market. Will we experience another housing bubble like 2008?
We know it feels like the wild, wild west out there when trying to buy a home. Ivy Zelman from the Z Report says, “This month our broker contacts report a continuation of robust demand and intense competition from buyers to ‘win’ houses – with bidding wars, all-cash offers, waived contingencies and rent-free leasebacks increasingly common in many markets”.
So much is happening across the country in real estate right now, but the biggest story certainly is the lack of available inventory causing this market – they call it here “robust demand, intense competition.” We’re seeing a lot of bidding wars. A reason for this is that we do not have the sellers we need for today’s market. This is causing a buyer fatigue for those that keep getting outbid, usually by those all cash offers. Soaring prices of lumber has slowed construction down across the nation as well. You can’t turn on the TV without hearing about rising costs of lumber in today’s market.
Robert Dietz of the National Association of Homebuilders says, “The decline in single family permits indicates that builders are slowing construction activity as costs rise. While housing starts were strong at the beginning of the year due to the home builder constructing homes that were sold pre-construction, higher costs and limited availability of building materials have now paused some projects.” This is hurting the supply out there while the demand still remains high.
We don’t want this to discourage you from going out and buying a home this summer. Home ownership is very important. It gives you the ability to build equity, as well as many nonfinancial benefits. Gallup’s polls show that 41% of Americans still believe that Real Estate is the best long term investment for the past 11 years. We expect prices to continue to grow, If you’re thinking about buying – do it now and capitalize on these insane equity gains.
We’re always here to help and keep you informed, so give us a call and we can help you navigate today’s market. And as always make it an Extraordinary Day!