Hope Is on the Horizon for Today’s Housing Shortage

Hope Is on the Horizon for Today’s Housing Shortage

Hope Is on the Horizon for Today’s Housing Shortage | MyKCM

The major challenge in today’s housing market is that there are more buyers looking to purchase than there are homes available to buy. Simply put, supply can’t keep up with demand. A normal market has a 6-month supply of homes for sale. Anything over that indicates it’s a buyers’ market, but an inventory level below that threshold means we’re in a sellers’ market. Today’s inventory level sits far below the norm. (see below)

The low housing inventory shortage doesn’t just apply to existing homes, as it relates to new home construction, builders are working diligently to bring more new build homes to the market. However, due to challenges with things like lumber supply, builders are unable to keep up with demand.

 

Hope Is on the Horizon for Today’s Housing Shortage | MyKCM

 

Despite today’s low inventory, there is hope on the horizon.

This inventory shortage doesn’t just apply to existing homes, as it relates to new home construction, builders are working diligently to bring more new build homes to the market. However, due to challenges with things like lumber supply, builders are unable to keep up with demand.

In May, the share of newly listed homes compared to active daily inventory hit a historical high of 44.4%, 17.3 percentage points higher than last year.This is a reflection of quickly selling homes and, for buyers, it means that while they can expect fresh new listings every week, they will have to be prepared to move quickly on desirable homes.” Things are starting to look up for residential real estate inventory. As the country continues to reopen, more houses are likely to be listed for sale. However, as long as buyer demand remains high, it will take time for the balance between supply and demand to truly neutralize.

Bottom Line

Although it may be challenging to find a house to buy in today’s market, there is hope on the horizon. Let’s connect to talk about your home search so we can find your dream home this summer.