This is no longer just a saying, but a reality – COVID-19 shook the property market. It’s nowhere close to what happened in the late 2000s, but things are different now than what they were back in 2018, and they’ll never be the same. The last year was especially rough for the housing business, and early signs show that this one won’t be any better. The competition is harsh in the real estate environment, and the dueling will be even stronger in the coming months.
The market is on the downfall, and that’s evidenced by the numbers. Yes, you have homes listed for sale all over the states as we speak, but when we compare the end of the last year to the end of 2023 there are approximately 20% fewer homes on the market. If we go as far as 2019 this number rises above 40%. As you can see, the situation isn’t precisely bright on the real estate market, with all the signs pointing to an even harsher environment for the buyers.
The buyers aren’t going to have it easy in the future in this department. The steady rise in prices is now over the roof. This is not an exaggeration by any means. An average home now is priced at $358,500, which is a 14% growth compared to the situation we had on our hands a year ago. What’s even worse, the high price isn’t deterring the buyers. No, due to the panic on this market everyone is eager to pull a trigger on the purchase. Nowadays you can find a place that is lying down on the sales market. No, someone will snatch that place in a matter of hours. This is now a trend and due to limited supply, it’s going nowhere anytime soon. You can ask an expert on this subject and you’ll hear the same answer. One of the people well-versed on the subject can be found if you visit this website, and you’ll hear a similar answer from them despite their amazing offer in the property domain. This brings us to the question of why is it so hard to find a house to buy right now?
What is The Big Issue?
If it was only one we wouldn’t have this situation. There are many factors influencing the real estate market. Buying a home is harder now than ever. But why? Well, there’s not one straight answer. In addition to what we already brought out in the first few paragraphs, there are a few essential factors that make things difficult for wannabe homeowners. First of all, as we meditate, the supply and the demand. The demand is like never before, but what about the supply? The supply in this chain is low like it was never before. So, in addition to the ongoing health pandemic, and worldwide geopolitical situation, there must be some more down-to-earth issues, right? Yes, that’s right.
First of all, we have the small issue of low-interest rates. They’ve also been around for a few months, and are making things difficult for all parties involved. Furthermore, we have worldwide shortages of material. The situation is similar in this domain both in the United States and Europe. We could say the same for Asia. As you can see, the issues are not located in only one area, but the housing market is going through changes all over the world. In addition to material, we can also say that there is a labor shortage. When the pandemic started, construction workers were sent to homes in all parts of the world. They’re just now making rounds to their old spots in full capacity. In some places, companies in this domain aren’t working in full capacity as of yet. When you combine all of these things, you understand why all the commotion in the real estate business. It’s one thing when you have a shortage of workforce, but it’s a whole another when you have that and the short material supplies, or the ones you do get are more expensive than they were before.
Furthermore, we need to say a thing or two about the low-interest rates. For some people, they were a massive gain in terms of buying a home. Some people, who already own a home, used the opportunity on low-interest rates and started buying their second or even third property. This essentially made them landlords and put an additional strain on the already less than crowded real estate market.
To make matters worse for the new and first-time buyers you need to do one thing to get your hands on a valuable property – you’d have to overpay. While you could earn in the process, and the resale value could still go up, the inflated prices make it hard to see buying a property right now as a valuable investment. By judging on the past experiences you could still buy a house right now, even if the price is steep. Check it here at eXp Realty for more information. The experience we have in mind is the one people had with the stocks of companies such as Amazon, Apple, and Tesla. These companies have been making strides for years now. When people bought into them with all their might a few years ago, many were scrutinized for bad business decisions for buying the stocks of these companies. They were on the rise, but a fall was expected by many experts and onlookers alike.
Fast forward a few years and where are these companies right now? All three are on the top of their game in their respective domains. Yes, their stocks and shares continued to grow and people who invested at the start of the decade are now probably millionaires. Even those who jumped the bandwagon a few years ago are doing fine for themselves. This is another aspect that makes buying a home right now quite difficult. Many people see it as a good investment despite the high prices. With the expected growth and crowded market in years to come, you could earn a lot if you invest in property right now down the road. So for people who are looking to get their home, the enemy might be the one who tries to make a business move and not the market itself. Anyway, you see why getting a household right now might be tough for everyone.