If you read any real estate articles these days, chances are that the severe shortage of homes for sale will be discussed. As with any real estate though, it truly is all about the location. For example, the states of Florida, Texas, & Tennessee are seeing record numbers of Americans moving into their states. Therefore, the housing inventory crunch is more pronounced in these states. On the flip side, states such as New York, New Jersey, & California do not have as much of an issue with housing inventories due to the number of Americans fleeing these states. So what does the future look like for housing inventories? We discuss below.
More homes for sale on the horizon
A recent survey by Realtor.com indicated that approximately 26% of homeowners plan to sell within 3 years. Furthermore, 1 in 10 homeowners plans to sell within the current year. As expected, the fear of finding a subsequent home in their price range is the primary concern for would-be home sellers right now.
According to George Ratiu, senior economist at Realtor.com, a typical year will see about 8% of the nation’s homes hit the market. He went on to state that it is expected that approximately 25% more homes will hit the market this year.
Top reasons why homeowners are not selling
As mentioned above, the most common reason cited by homeowners not wanting to sell right now is the fear of not finding a new home within their price range. Some of the other reasons cited in the recent survey were:
- Not sure where they want to move
- Concerned about the current economic climate
- Worried about the logistics of buying and selling at the same time
- Unsure about showing a home during the pandemic
Factors that could prompt homeowners to sell sooner
The survey also asked homeowners what factors would prompt them to sell their homes sooner. Below were the top responses given:
- More affordable homes on the market (33%)
- Avoiding the tricky logistics of buying and selling at the same time (29%)
- Freedom from preparing the home for sale (27%)
- Lower health risks from the COVID-19 pandemic (24%)
With home prices at historic highs right now in South Florida, this is a great time to sell. For first-time sellers, they will likely be surprised to learn just how much equity they probably have in their homes. Of course, the biggest challenge is finding a suitable replacement home. The homeowners in the best position to sell right now are either those looking to sell a larger home and downsize in the same area or those that may be considering a move to a less expensive area.
If you are a South Florida homeowner and would like a free market evaluation on your home, contact Live South Florida Realty, Inc. today. A comparative market analysis combined with a snapshot of available homes for sale matching your desired criteria is a great way to begin forming a plan. With local and knowledgeable real estate agents throughout Palm Beach, Broward, & Dade counties, we are ready and able to assist you.