US Housing Market: The Struggle to Overcome Inventory Shortage
As the real estate industry continues to face challenges, homebuyers are now encountering another obstacle: a housing inventory shortage. In a recent interview with “Mornings with Maria”, Realtor.com’s chief economist Danielle Hale said, “We’ve got a big hole to dig out of.” The industry is currently grappling with the lack of new homes available, making homeownership a distant reality for some first-time buyers.
Slow Growth in Single-Family Construction
Although Hale remains optimistic about the inventory of new units and believes that the industry will see improvements, she also admits that it’s a “multiyear problem.” She explained that while single-family construction is expected to increase by 0.4% next year, it’s still not a significant gain. “Construction right now is on the upper end of what we’ve seen it do over the last, really since 2012,” Hale added.
Challenges Faced by Homebuyers and Renters
Unfortunately, homebuyers aren’t the only ones facing challenges in the real estate sector. According to Hale, those who choose to rent won’t “get a big break” either. She explained, “Relative to high costs in the housing market, I think renting is going to be an option for many families who are trying to figure out how do I save on housing costs.” However, she also stressed that there aren’t many ways to save on housing costs.
Future Predictions for the Housing Market
As the U.S. housing market continues to face a shortage of inventory, Hale expects home prices to decline more consistently in 2024. “But we’re not talking a big break because of this shortage of inventory. We’re expecting 1.7% for the year,” she said. With listing prices remaining flat in recent months, it seems that both homebuyers and renters will have to continue navigating the challenges of the real estate industry.
What Does This Mean for You?
If you’re considering entering the housing market as a buyer or renter, it’s essential to be aware of the ongoing inventory shortage and its impact on home prices and rental costs. As a homebuyer, you may need to be patient and prepared for potential bidding wars, while renters should be prepared for limited options and potentially higher costs.
Despite these challenges, there are still opportunities to find your dream home or rental property. As a real estate agent, I am committed to helping my clients navigate the current market conditions and find the perfect home or rental for their needs. To learn more about how I can help you in your search, please visit my website or contact me directly.
Additional Resources for Homebuyers and Renters
- Buy a Home
- Sell a Home
- Search for Homes
- 8 Key Steps to Buying Your Dream Home: Easy Guide
- Catchy Home Inspection Checklist: Spot Red Flags & Save on Your Next Home
- Ultimate Guide: Successfully Selling Your Home Fast and Stress-Free
Orginal article: Link To Article – provided by Kansas City Realtors
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