Is it a housing problem or a housing opportunity? It is debatable.
The scarcity of available properties for sale is today's largest problem in real estate. Due to a lack of housing supply, properties across the country have appreciated at a significantly higher rate than in previous years.
There are a variety of reasons for the low number of homes on the market, but as the graph below shows, we're still significantly behind where we've been over the past decade. Currently, there is just a 2.4-month supply of homes for sale across the country.
Many purchasers are becoming disappointed in their search as a result of the shortage of available properties. On the other hand, low supply is driving up home values, creating a great opportunity for sellers. The average property has increased in value by more than $50,000 in the last year, according to CoreLogic. And for many homeowners, that means rethinking their wants and taking use of their equity to upsize or downsize.
According to CoreLogic's Chief Economist, Dr. Frank Nothaft:
"As of mid-2021, the average homeowner with a mortgage has more than $200,000 in home equity."
Many sellers are taking advantage of today's low borrowing rates and the equity in their homes to sell.
The scarcity of properties for sale is the largest difficulty in real estate, but it's also an opportunity for sellers. Let's connect to get the process started if you're thinking about selling your home.