Demand is supposed to incentivize builders to provide the supply, so why are housing inventories still so low as we go through another year of a red hot housing market in Wisconsin and around the nation?
That’s a question many prospective home buyers have as they work to cope with a highly competitive seller’s market. Let’s take a look at a few potential answers:
We Were Behind Before the Demand Even Hit
New construction was behind the long-term average for more than 13 years since the recession when building new construction came to a stop.The increased demand in recent years has left builders unable to construct homes fast enough to meet demand. Increases in the costs of building materials and pandemic-related supply chain issues have created further roadblocks for builders as they scramble to play catch up.
Speaking of the Pandemic…
It’s not an excuse; the pandemic really has worked its tentacles into every facet of the economy and housing is no exception. The pandemic led to a renewed appreciation for the meaning of “home sweet home”, as people spent more time indoors with their loved ones. Buyers took advantage of low mortgage rates to enter the housing market to search for a home that met their family’s evolving needs.
What Does This Mean For You?
There’s no getting around it: low inventory is a challenge for buyers. Having a local real estate agent who understands the market is crucial for navigating a challenging time for home buyers. Get in touch with our team at Gail Rutkowski & Associates and tell us about your goals and priorities. We’ll take care of the rest.