Existing Home Inventory Can't Keep Up With Demand
What options do buyers have in an inventory shortage?
It’s easy to skim headlines about interest rates and assume that the housing market is suddenly on the rocks. However, despite fewer sales nationwide compared to a year ago, most markets in the U.S. are still seeing high demand for homes. In fact, in many areas, existing home inventory can’t keep up with demand.
Supply and Demand
Nationwide, more homeowners are staying put instead of selling compared to the last few years. With higher mortgage rates and steady home appreciation, it’s more difficult to justify moving and taking on a higher interest rate. While the frenzy of 2021 put sellers at a strong advantage, the current market doesn’t offer quite as much leverage.
At the same time, demand is still relatively high. First-time homebuyers are still on the hunt, and states such as North Carolina are seeing ongoing population growth. In areas where job opportunities abound and quality of life beats crammed coastal cities, housing supply still falls far short of demand.
New Home Inventory
Because existing homeowners are less likely to sell until interest rates drop again, new homes are taking up an increasing share of the total housing inventory. While they made up 11% of the market on average in 2020, they now claim a 29% share. What’s more, only 14% of those new homes are complete and ready for move-in, while the remainder are still under construction.
In short, there aren’t enough existing homes to keep up with the number of interested buyers, and home construction doesn’t happen overnight. That leaves an ongoing gap between the number of homes available and the number of people who are ready to buy a home.
Options for Buyers
Those looking to move to high-demand areas like Raleigh or Charlotte don’t have many short-term options when it comes to buying a home. With so few new homes ready for move-in and with high competition for the slim inventory of existing homes, buyers are left to compromise. Buying soon likely means giving up a few of the features or the location of your ideal home. On the other hand, you could wait for a new house to hit the market, which still may involve some level of compromise, plus a waiting period as construction finishes.
Fortunately, there’s another option. Instead of signing on for a new home that’s under construction or buying a house that’s available but doesn’t meet your needs, you can build a customized new home that checks all of your boxes. Choose the location, the home plan, the style, and the amenities of a new build that’s just for you. Atmos leverages innovative technology alongside dedicated experts in order to bring your dream home to life.
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