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Using data from Altos Research, the publication finds in 2021, the nationwide inventory for single-family homes, condos and townhouses has plummeted to around 468,000 units versus nearly 1.5 million less than six years ago. It's fallen strongly particularly in metro areas. Washington, D.C. has 6,000 homes for sale, less than half of what it offered two years ago. Atlanta has hovered around 20,000 units the last three years, but now it's at 9,000. Two years ago you could choose among more than 40,000 offerings in Chicago. Now you have just 17,000 to consider.
The article says that naturally the coronavirus pandemic has played a role in these shortages, but so have other factors. Baby boomers are reluctant to move out and downsize. Some homes with government-backed loans that would've come onto the market through foreclosures or forced sales are on hold through the summer. Less housing has been built this past decade relative to historical averages, Low interest rates have incentivized homeowners to stay home longer and buy new homes as investment properties to rent to others.
The result is more people are buying homes sight unseen, typically above list prices. Some metros have median sales prices up 15% or more. In fact, in many metros, housing prices are rising while rentals are falling.
There's no easy answer to this situation. It will takes years of building to get supply up to meet demand. Rentals may be converted back to homes for sales. Boomers may finally downsize and move. For now and the foreseeable future, we're definitely in a sellers market for much of America.
We would sell and move, if there was anything that appealed to us.
There is not, not at any sensible price, anyway.
We would like to convert our equity into more of a single level home, without writing a $200,000 check to get an agreeable place we think we would enjoy.
But now, we have decided to do work as needed to make our place into a longer term home for us.
So, lack of inventory is a self-sustaining dynamic. We can't or won't buy, so we are withholding our place from the market inventory. I hear the same routinely from others.
We would sell and move, if there was anything that appealed to us.
There is not, not at any sensible price, anyway.
We would like to convert our equity into more of a single level home, without writing a $200,000 check to get an agreeable place we think we would enjoy.
But now, we have decided to do work as needed to make our place into a longer term home for us.
So, lack of inventory is a self-sustaining dynamic. We can't or won't buy, so we are withholding our place from the market inventory. I hear the same routinely from others.
Yep. I posted this on the other long real estate thread.
A big portion of real estate is people trading up and down or sideways. But with no inventory, they can't move, so they don't list their houses. And because their houses aren't being listed, other people can't find houses they like to move up or down into, so they in turn don't list their houses.
It's a trap and it may turn into a vicious trap that will be devilish to get out quickly.
Yep. I posted this on the other long real estate thread.
A big portion of real estate is people trading up and down or sideways. But with no inventory, they can't move, so they don't list their houses. And because their houses aren't being listed, other people can't find houses they like to move up or down into, so they in turn don't list their houses.
It's a trap and it may turn into a vicious trap that will be devilish to get out quickly.
We're looking to upgrade, and free up our starter house for someone else. However most of the upgrade options are $1 million+, which I can't justify.
Cutting the average time on market in half due to high demand would produce the same affect statistically as reducing inventory by half at any given time. A much truer gauge would be the number of sales year over year.
We would sell and move, if there was anything that appealed to us.
There is not, not at any sensible price, anyway.
We would like to convert our equity into more of a single level home, without writing a $200,000 check to get an agreeable place we think we would enjoy.
But now, we have decided to do work as needed to make our place into a longer term home for us.
So, lack of inventory is a self-sustaining dynamic. We can't or won't buy, so we are withholding our place from the market inventory. I hear the same routinely from others.
You remind me of my Dad (and mom), who looking to "downsize" to a place that was more long term friendly, kept saying that "it feels like I'm downgrading," or "It feels like I'm settling." He was in talks about adding a first floor master, when a neighbor said she was selling. SHE had a first floor master. So, they are now downsizing to a house that is 600 square feet larger.
Had two houses (snow bird). Sold one and now live in other. I very happily sold at these prices. Got much more than I expected. As-is sale; forty year old house; never updated.
We would sell and move, if there was anything that appealed to us.
There is not, not at any sensible price, anyway.
We would like to convert our equity into more of a single level home, without writing a $200,000 check to get an agreeable place we think we would enjoy.
But now, we have decided to do work as needed to make our place into a longer term home for us.
So, lack of inventory is a self-sustaining dynamic. We can't or won't buy, so we are withholding our place from the market inventory. I hear the same routinely from others.
Bluntly put, I am not willing to take on a smaller house for more money.
You remind me of my Dad (and mom), who looking to "downsize" to a place that was more long term friendly, kept saying that "it feels like I'm downgrading," or "It feels like I'm settling." He was in talks about adding a first floor master, when a neighbor said she was selling. SHE had a first floor master. So, they are now downsizing to a house that is 600 square feet larger.
Never kick Lady Luck away from the table.
Good for your folks!
Quote:
Originally Posted by orca17
Bluntly put, I am not willing to take on a smaller house for more money.
For us, we aren't trying to downsize. Just want similar to what we have with slightly different floor plan.
Perhaps just a bit closer, walking distance, to conveniences.
We have 7 grocery stores within 3 miles, and the nearest is just over a mile away, with no sidewalks.
And, what we are seeing are properties we would have to invest in heavily, or properties that just don't appeal at all.
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