Monday, January 15, 2024 / by Richard Eimers
The persistent housing supply shortage has sparked speculation on whether homebuyers can expect more options in the coming year. NAR economist Yun is optimistic, anticipating that pent-up sellers, weary of waiting, will soon list their properties. He envisions a steady increase in listings and continued success in new home sales.
However, not all experts align with this view. Realtor.com economists forecast a potential 14% drop in inventory this year. The shortage is compounded by a decline in existing homes for sale and a significant drop in single-family housing starts in 2023 and 2022.
Despite the challenges, newly-built homes have played a crucial role, constituting one-third of all homes for sale in 2023—double the historical average. Yet, it's acknowledged that new construction alone won't bridge the inventory gap.
Chief Economist Mark Fleming from First American Financial Corporation highlights a U.S. shortfall of approximately one million homes. He suggests that conditions won't improve until individual homeowners re-enter the market, emphasizing the need for more sellers.
What It Means for You
Buyers: While inventory remains tight, leveraging the expertise of a real estate professional can provide access to off-market and pre-market listings. Exploring both new constructions and existing homes is essential.
Sellers: Benefit from the low-inventory environment but prepare to compete against brand-new homes. Our assistance in preparing your property for the market ensures highlighting features that appeal to today’s buyers.
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