Will inventory go up soon is the big question in today’s market?
Here is our July 2021 national market update. Will inventory go up soon is the big question in today’s market? Will we experience another housing bubble like 2008? We know it feels like the wild, wild west out there when you’re trying to buy a home. Ivy Zelman from the “Z Report” says, “This month our broker contacts report a continuation of robust demand and intense competition from buyers to win houses, with bidding wars, all-cash offers, waived contingencies and rent-free leasebacks increasingly common in many markets.”
So much is happening across the country in real estate right now, but the biggest story certainly is the lack of available inventory causing this market. Ivy calls it here “robust demand, intense competition.” We’re seeing a lot of bidding wars. A reason for this is that we do not have the sellers we need for today’s market. This is causing buyers, buyer fatigue for those that keep getting outbid, usually by those all-cash offers.
Soaring prices in lumber have slowed construction down across the nation as well. You can’t turn on the TV without hearing about the rising costs of lumber in today’s market. Robert Dietz of the National Association of Homebuilders says, “The decline in single-family permits indicates that builders are slowing construction activity as costs rise. While housing starts were strong at the beginning of the year due to the home builder constructing homes that were sold pre-construction, higher costs and limited availability of building materials have now paused some projects.” This is hurting the supply out there while the demand still remains high. We don’t want you to get discouraged from going out and buying a home this summer. Homeownership is still very important. It gives you the ability to build equity, as well as many non-financial benefits.
Gallup’s polls show that 41% of Americans still believe that real estate is the best long-term investment for the past 11 years. We expect prices to continue to grow, so if you’re thinking about buying, do it now. We’re always here to help you keep informed at A&J Realty Partners, so give us a call and we can help you navigate today’s market. And as always we’re here to help you fulfill your dreams no matter the size.