If you are involved in the real estate market in the United States, you probably noticed one of 2016’s biggest problems: a lack of inventory. Realtor.com wrote that the number of active listings on their site has dropped 8% in since 2014. Some reasons for the housing shortage are rooted in challenges that sellers face. Realtor.com first listed the top motivations for sellers:
- Want different neighborhood (42%)
- Need bigger home (21%)
- Need smaller home (19%)
- Want location with better weather/view/lifestyle (19%)
- Need lower cost of living (19%)
- Getting retired/just retired (15%)
However, as Jonathan Smoke, chief economist at realtor.com wrote, just because a seller is motivated does not mean they can.
“One in six self-identified sellers feel like they need to find their next home before they sell their existing home. We estimate that 85% of sellers intend to both buy and sell. So then they find themselves in the same situation as home buyers across the nation, who are faced with a shortage of homes for sale. And so the circle is complete.
So the lack of housing inventory is a chicken-or-the-egg dilemma: Buyers can’t find a home because there aren’t enough on the market (which is also driving up prices), but sellers, while motivated by the higher prices, can’t sell because they’re afraid that they’ll end up homeless. Meanwhile, new home construction is growing but not enough to ease the logjam,” Smoke wrote.
If you are either a buyer or a seller in need of a new home, you are probably facing challenges. Seeing these reasons for the housing shortage show that anyone in the market could use advice. If you are in the Miami area, our amazing agents at RE/MAX Paradise can help you today. RE/MAX Paradise can help you beat those challenges and help you plan for the future of your property. Check out the amazing properties we do have on the market, and contact us today.