It’s no secret that lack of inventory is the real estate headline of the year. In almost every city across the country, agents are playing a cruel game of cat and mouse in trying to find their buyers a home. And its not just new buyers, but every seller who is also in the market for their next home. Since the market crash, agents have been dreaming about a return to a hot market with multiple offers and short days on market, but is it all too much this time around? Inman News Senior Writer, Amber Taufen joins us today to report on what she’s learned about the factors that are holding this housing market prisoner and to help us piece it all together.
In her May 10th article on Inman titled, “What’s driving real estate’s home listing shortage?” Amber tackled the question of Why? We know its happening, but what’s really behind the onslaught of low inventory statistics and commentary from NAR, HAHB and the U.S. Census Bureau.
Amber and Tim address issues like big investors who are now holding millions of homes across the country in their rental portfolio, making them unavailable to the market. A little number crunching shows that their ROI is such that they may not be giving those up any time soon and what will that mean?
What about the effect of new luxury apartment campuses that are popping up all over the place now, trying to fill the need, but also known to not be sizable enough for long term occupancy?
Hear about cities like Denver where rental prices are stabilizing due to builders who overbuilt for the market, but where single family home prices are rising further out of reach for many professionals. Where do those people go? Back home to Mom and Dad?
That may be a possibility, according to Amber, as multigenerational living emerges as a new and potentially long term trend. From government regulations on new construction to the fear that’s holding back sellers who have no idea where they will be able to buy next, it’s a topic that every agent should be well-versed on.
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