Why Now’s the Time for Your Home to Shine in Today’s Market
Though there may be more homes available than last year, the demand from buyers still far outpaces supply. If moving is on your mind, this means your home has a strong chance to stand out in today’s market.
Let’s take a closer look at why the market remains tipped in sellers’ favor and how understanding the ongoing housing shortage can help you see the potential in making a move now.
What’s Driving the Housing Shortage?
Underproduction of Homes For over a decade, new home construction has fallen behind demand. Zillow highlights the issue:
“In 2022, 1.4 million homes were built — a record since the early days of the Great Recession. However, the number of U.S. families increased by 1.8 million, meaning the nation couldn’t even keep up with new family formations, let alone tackle the shortage that has impacted housing affordability.”
Rising Costs The rising costs of building materials, labor shortages, and supply chain disruptions have significantly impacted new home construction. In many cases, these factors slow or completely stall new projects.
Regional Imbalances Demand is unevenly distributed across regions. Certain desirable areas experience faster population growth than builders can match. Local building permits often lag behind job growth in these areas, creating even tighter housing markets and driving prices up.
Just How Big Is the Gap?
According to Real Estate News, expert estimates put the U.S. housing shortage at around 3.3 million homes. This significant gap underscores how limited inventory remains, giving current homeowners an advantage in today’s market.
The Housing Demand Challenge and Why It’s a Seller’s Market
The current shortage of homes on the market highlights an urgent need for new housing to meet today’s buyer demand. But what about the future?
According to John Burns Research and Consulting (JBREC), over the next decade, the U.S. will need approximately 18 million new homes to meet expected demand. This includes housing for new households, second homes, and replacements for aging properties.
So, while there may be a slight increase in available homes compared to last year, demand still far outweighs supply. For homeowners thinking of selling, this translates into a strong opportunity to maximize returns.
Key Takeaways for Sellers
If you’re considering selling, the inventory shortage means your home is positioned to attract significant buyer interest. It will take years to balance the supply deficit, and the current market is still tight. With more buyers than available homes, competition remains high, creating upward pressure on prices and benefiting sellers.
Each market has its own trends, so working with a knowledgeable real estate agent is essential. They can help you set the right price and build a strategy to draw in the most qualified buyers.
Bottom Line
While the number of homes on the market has grown slightly since last year, the overall shortage keeps sellers in a strong position. Let’s connect so you have an expert on your side to make the most of today’s market.
