If you have thought about purchasing a home in the last couple of years and have decided to wait until you feel like the craziness of the sellers’ market has balanced out a little bit you may be wondering why after two years it is still so competitive. Why is it that there seem to be so many buyers with more and more continuing to come and so few properties?
Why Does the Housing Market Remain so Competitive?
Large real estate broker Redfin continuously conducts reports and a new report has shown that there is one main factor continuing to contribute to the housing supply shortage right now. Their one big finding from this report showed that many homeowners across the country are not moving as often as they used to.
Data from the report has shown that in 2021 the average American homeowner has spent around 13.2 years living in their current home. This number has significantly increased from just 10 years ago. Research from the year 2012 showed that the average American homeowner had been in their home for just 10.1 years.
There is a bit of promising news to this research though in that the number showed a slight decrease between the years 2020 and 2021. In 2021 the average American homeowner had been in their home for 13.5 years. This very slight dip in the average years someone has spent in their home reflects a larger number of people relocating across the country due to various factors of the pandemic.
When the pandemic began a large amount of the American workforce suddenly had the ability to work from home making it possible to live practically anywhere and retain their current job. This led a large number of people to seek out moving to cheaper locations where they could afford more property and also have the added benefit of more private outdoor space and the ability to spend time outside feeling safer.
It may not seem like the small decline in average years in a home would help the housing market as it essentially is bringing more buyers to the market. It is beneficial in the fact that it means more people are selling their homes as compared to when the pandemic first began.
In order for supply to increase this means that people need to be putting their homes up for sale and a decrease in longevity of time in home shows just that. Even with this promising news, there are still some factors keeping homeowners reluctant to list their homes.
Some of the factors keeping homeowners in their homes include rising mortgage rates coupled with a continuation and the rise of home prices. Another factor is that once someone lists their home and it easily sells, they now become a buyer getting caught up in the fierce competition of the market. These are significant factors that are causing some homeowners to decide to stay put for now and hold off on selling their homes.
Another impact of low inventory is that there are several homeowners across America age 65 and older. Numbers from 2019 showed that 1/3 of American homeowners were at this age. Many homeowners in this stage of life are opting to just stay put in their current home instead of choosing to relocate to a smaller property or a retirement community.
But regardless of what research and numbers show, it is always best to make the decision that is best for your personal lifestyle wants and needs. No matter the statistics and reports, with the right real estate agent you can navigate this competitive market and find a great home for you by tweaking your strategy just a little. Likewise, you could also greatly benefit from selling your home in a very lucrative market.
For more information on buying or selling a home in San Tan Valley and surrounding areas please contact me anytime.
For more information on purchasing or selling a home in San Tan Valley and surrounding areas, please contact us anytime.
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