WHY ARE HOUSING PRICES SKY HIGH?

Do You Know What Your Home is Worth Today?

Photo Used in Blog Post "Why are Housing Prices So High?"

Simply put: There is historically low inventory, and a lot of people who want to buy.

  • The housing supply is at record lows! Check out the graph below, showing amount of inventory of homes for sale on the market here locally at the LOWEST point in the last 20 years.
Used in Blog Post 'Why are Housing Prices So High?"
  • Rates of construction cannot keep up. Part of this was due to COVID, to lumber prices that soared, along with the shortage of construction workers and construction wages that continue to rise. All of this is fueling the shortage of new homes coming on the market. The nation is facing a shortage of nearly 4 million new homes. Even as construction increases, it would still take four to five for stock to meet the demand. 
    • A drastic shortage: From 2010 to 2019, there were 21,288 single-family home construction starts per 1 million people in the U.S. In the 1980s, 90s and 2000s, there were 41,000 per 1 million people, nearly double as much new inventory compared to now. Then, couple this amidst a continuing, exploding population boom!
  • Last, there are a lot of buyers. Interest rates dipped to historical lows this past year, causing many buyers to flood the market. Also, 45 million Americans will hit the median first-time home buyer age over the next 10 years.

This giant imbalance between demand and the fixed (limited) supply of housing, is creating excess bidders for single properties, bids far over asking price without contingencies.

An underlying demand issue has made it possible for sellers to obtain high pricing, at least in the near term!

Home Sold - How much is my home worth in this market

WHAT IS YOUR HOME WORTH TODAY?

Curious? Let us offer you a complimentary home valuation today so you know where you stand. Simply enter your name and address, and we will provide a comprehensive home value report for you, free of charge or obligations!

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