If you’re considering selling your home, now might be one of the best times to do so. Although there are more homes on the market than there were at this time last year, the demand for homes is still outpacing the supply. This imbalance works to your advantage, putting your house in the spotlight. Here’s a closer look at the factors behind the shortage and why they create a favorable environment for sellers.
What’s Causing the Housing Shortage?
Despite a growing number of homes hitting the market, there simply aren’t enough to meet the demands of all the buyers. Several key factors contribute to this ongoing housing shortage, making your home more appealing if you decide to sell:
1. Underproduction of Homes
For years, new home construction has lagged behind the needs of the population. As Zillow points out:
“In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.”
This means that new homes are not being built quickly enough to keep up with the growing demand, leaving many buyers without options.
2. Rising Construction Costs
The cost of building materials, coupled with labor shortages and supply chain disruptions, has driven up expenses for homebuilders. These rising costs slow down construction, limiting the number of new homes being built. Some regions feel this impact more acutely, further tightening the inventory in those areas.
3. Regional Imbalances
Certain cities and regions are more desirable, attracting more people at a faster rate than homes can be built. This means that in these popular areas, new housing isn’t keeping pace with job growth and population increases. As a result, these “hot spots” have extremely competitive markets where homes are snapped up quickly, often at high prices.
How Big Is the Shortfall?
The U.S. housing market is facing a significant shortage of homes. According to Real Estate News, the shortfall is estimated at around 3.3 million homes (as shown in the graph below). This figure highlights just how severe the demand-supply gap is for today’s buyers. But this is only the beginning.
John Burns Research and Consulting (JBREC) projects that over the next decade, the U.S. will need approximately 18 million new homes to keep up with future demand. This figure accounts for new households, second homes, and the replacement of aging or uninhabitable properties.
The demand continues to outstrip supply, putting sellers in a unique position to capitalize on this market dynamic. Even though more homes are listed for sale compared to last year, there still aren’t enough homes to satisfy all the buyers out there.
What This Means for Sellers
If you’re thinking about selling, this shortage could play in your favor. When buyers have fewer options, your house is more likely to get noticed and could even receive multiple offers. With the limited supply, buyers may compete for the available homes, putting upward pressure on prices and allowing you to maximize your profits.
Additionally, with a tighter inventory, homes that are priced correctly and presented well tend to sell faster. And with the help of a real estate agent who understands your local market, you can attract more interest, negotiate better terms, and potentially achieve a higher sale price.
Working with a Real Estate Agent for Success
The right agent can make all the difference in today’s market. Every area has its unique trends, and a local expert will know exactly how to position your home to stand out. An agent can guide you on pricing, marketing strategies, and preparing your home to attract the right buyers.
By creating a tailored plan, a skilled agent will help you navigate the competitive market, positioning your home to catch the eye of buyers who are eager to purchase in a low-inventory environment. Their insights and experience ensure you’re making the most of today’s seller-friendly conditions.
Bottom Line
While there may be more homes on the market compared to last year, the overall shortage of housing still creates a strong advantage for sellers. This scarcity means your home can attract serious attention, positioning you to make the most out of the current demand.
Ready to make your move? Connect with Influencers Realty Group today to discuss your options and create a strategy to sell your home for top dollar in today’s competitive market. Our team is here to guide you every step of the way!
