It’s been a few months now of the Real Estate Market favoring seller’s and now more than ever we are starting to see a real shortage in inventory. With a large majority of homes receiving multiple offers, selling for well above asking price, and only sitting on the market for a few days, many buyers are having a hard time finding a home to purchase without being beat by other buyers.
There are many different factors that could be in play in regard to why the inventory within the Real Estate world is so low however a few different things seem to be playing the largest role in the current shortage.
Related: Buying in a Seller’s Market
#1 Down Payments
One of the biggest hurtles, especially for first-time home buyers, is coming up with the needed funds in order to have the minimum down payment requirements to purchase a home. While for many American’s the stimulus payments were used as a way to simply keep food on the table, for many others, especially essential workers, these payments were a way of being able to save for the future.
Pending on the cost of the home, many buyers saved up all their stimulus checks, as well as additional monthly savings so that they would have the funds needed to purchase a home, and thus, many buyers who would have been unable to buy previously, were now given the funds to do so and were able to enter the Real Estate Market.
#2 Changing Demographics
In past years, nearly all homes were owned by married couples, such was the way of life. The “timeline” to life seemed to be getting married and then buying a house. While some people still follow these traditional steps, it isn’t the case for a very large handful of Americans and more people are purchasing Real Estate without tying the knot to their significant other. Singles are buying homes, friends are buying homes together and people are purchasing homes with their significant others regardless of marital status, etc.
Related: 4 Tips on Being Prepared for a Bidding War
Needless to say, the market was once dominated by primarily married couples and is now much more open and many homeowners are foregoing the more traditional route and enjoying the perks of homeownership regardless of where they are in life. This simply means that more people are buying homes, which in turn, lowers the number of homes that are available at any given time.
As mentioned, there could be dozens of different factors that play a role in the current market, availability, and rates that could lead to the Real Estate shortage, however, despite any challenges or shortages, working closely with a trusted and experienced agent is your best shot at being able to find a home you love, and get your offer accepted.
If you’re currently searching for a new home, are ready to sell your home and are in need of a qualified seller’s agent, or if you have any questions regarding New York Real Estate, please feel free to contact our office at any time.