![]() The COVID-19 pandemic has sparked a trend of people looking to move away from their current locations. Homeowners that are currently living in larger homes have less of a need to sell their homes because their square footage requirements are already satisfied and they’re less likely to be looking for an upgrade. However, those that are looking for larger homes may have difficulty in finding one. Time spent at home during the pandemic has led to an increase in people wishing for more space. However, under the current conditions, sellers are in a great position to break the 10-year trend and sell their homes while demand is high and inventory is low. Many homeowners are aiming to recoup their equity, which has justified their longer stays. People are staying in their homes an average of 13 years now, up from an average of only 5-7 years before the housing bubble burst. Everyone needs a place to live after they’ve sold their home, and finding a new home is definitely more difficult than selling your current one under the current market conditions. Potential sellers are also quick to recognize that the low inventory will affect them, too. Those that are happy in their homes are more likely to look into refinancing options and are taking advantage of bargain-basement mortgages and other ways to lower their monthly costs so they can invest in home improvement projects instead. Current homeowners are deciding to stay in their homes and wait until more stable conditions before putting their home up for sale. Many sellers are reluctant to list their homes during the pandemic. Sellers Aren’t Listing During the Pandemic However, the influx of motivated buyers only further exaggerates concerns over low inventory.Īlmost everything housing related, including new home sales, home improvement projects and home prices, are in a V-shaped recovery. With current rates hovering around 3.5%, many buyers are anxious to get into the market to take advantage. Demand is Surging Because of Low RatesĪmidst the pandemic, the market is seeing some of the lowest rates in years. ![]() Limited housing supply has been a concern for many years and COVID-19 has proven that demand will continue to outweigh supply. While a recent surge of new construction due to reopenings has eased some of the pressure, industry experts agree that builders just simply can’t build fast enough. ![]() The lack of new and available residences has only been amplified by delays caused by COVID-19 as well. Since the housing bubble burst in 2008, we’ve seen a growth in population and demand, but new construction hasn’t been able to keep up. The new housing supply is not keeping up with the current demand for a variety of reasons. As there are more buyers searching for homes, and less sellers looking to list their homes under the current conditions, the market is tipped in the seller's favor.Īccording to the National Association of Realtors, the total housing inventory is down by 18.8% compared to this time last year. Inventory is one of the biggest challenges in the current housing market. ![]()
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