The pandemic and corresponding lock downs have resulted in many homeowners reassessing their homes and looking to make improvements. Add in some budget savings due to not traveling or dining out as often and suddenly there may even be additional funds to finance any home improvement projects. In fact, spending on home improvement and repairs grew more than 3%, to nearly $420 billion in 2020, as households modified their living spaces for work, school and leisure.
Although the work from home and online schooling shifts have forced many homeowners to look for larger homes, many have also opted to remodel their existing home instead. In fact, many experts believe that this remodeling push is further constraining home inventory levels as more Americans stay put. Historically, remodeling activity typically is associated with increased home sales. However, the pandemic has completely changed this trend.
The refinance boom & staying put
Another factor that has been impacting the “stay in place” push has been the historically low mortgage rates. Many homeowners have decided to not only remodel their existing homes, but they are also refinancing to take advantage of the historically low rates. In some cases, the ultimate savings from their refinance may help offset their remodeling costs.
Another demographic that may be contributing to the tight inventory are the 65-and-up homeowners. It has become more common for this demographic to age in place in their homes, as opposed to selling and downsizing or moving to assisted living facilities. Retirees traditionally have sold their single-family homes and downsized throughout time. Now, we are seeing more of these homeowners stay put thus putting further strain on housing inventory.
Based on historical averages, there is a shortage of 3 million homes across the country. This is driving up prices to a point that many buyers are even being priced out. Although new construction is increasing, it is not enough to fill the current void. If you are a homeowner that is thinking about listing your home for sale, this may actually be the ideal time. Of course, it is highly recommended that you have a plan in place on where you will be moving to. If feasible, it is also recommended that you secure your new home prior to selling your existing home.
At Live South Florida Realty, Inc., our recent single-family home listings have typically sold within days if not hours recently. The strong buyer demand combined with our proven marketing strategies have resulted in quick sales at premium sales prices for our sellers. If you are thinking about selling your property in South Florida, contact Live South Florida Realty, Inc. today!