The question many homebuyers are facing this year is, “Why is it so hard to find a house?” We’re in the ultimate sellers’ market, which means real estate is ultra-competitive for buyers right now. The National Association of Realtors (NAR) notes homes are getting an average of 4.8 offers per sale, and that number keeps rising. Why? It’s because there are so few houses for sale.
Low inventory in the housing market isn’t new, but it’s becoming more challenging to navigate. Danielle Hale, Chief Economist at realtor.com, explains:
While many homeowners paused their plans to sell during the height of the pandemic, this isn’t the main cause of today’s huge gap between supply and demand. Sam Khater, Vice President and Chief Economist at Freddie Mac, Economic Housing and Research Division,shares:
When you consider the number of homes built in the U.S. by decade, the serious lack of new construction is clear (See graph below):The number of newly built homes is disproportionately lower than the rate of household formation, which, according to the U.S. Census Bureau, has continued to increase. Khater also explains:
To catch up to current demand, Freddie Mac estimates we need to build almost four million homes. The good news is builders are working hard to get us there. The U.S. Census Bureau also states:
What does this mean? Lawrence Yun, Chief Economist at NAR, clarifies:
If you’re planning to buy this year, the key to success will be patience, given today’s low inventory environment. Let’s connect today to talk more about what’s happening in our area.
Cedar Rapids Homes for Sale: AshleyLetsch, Real Estate Agent with Pinnacle Realty in Cedar Rapids, Iowa. Advocating for Sellers and Buyers with Professional Real Estate Services. Nothing Compares to having a Real Estate Advisor on your Side Providing True Data and Research to make an Informed and Educated Decision. You can get Information about Real Estate in Linn County and Jones County, as well as Specific Requested Areas in Eastern Iowa; by Contacting me at: 319-450-8785
Ashley Letsch REALTOR® Assisting Buyers and Sellers Download Your Free: Buyer Guide/ Seller Guide 319-450-8785 1924 St Andrews Court NE Cedar Rapids, IA 52402 Licensed in Iowa