Relief is on the way for 2021 buyers—just be patient.

As many of you may know, competition is fierce for homes right now. There simply aren’t enough homes for sale to match buyer demand. Hope is on the horizon, though. We just have to look at the reason behind this lack of inventory. 

Low inventory is nothing new, but it’s becoming more challenging to navigate. Buyers can’t buy what’s not for sale. This year we’re seeing a drastically low number of new listings compared to previous years. For example, in March 2021, there were roughly 17,000 fewer new listings than we saw in March 2019. Although we’ve seen a slight uptick in the number of listings recently, seller activity is still about 19% below what occurred in March 2019.

Why is the supply so low? The main cause has been the long-term decline in the new construction of single-family homes. When you consider the number of homes built in the U.S. by decade, this serious lack of new construction is clear. As you can see in the video at 1:55, the previous decade (2010 to 2019) saw almost a 50% drop in new construction compared to the decade before that. To catch up with current demand, experts say we’d need to build almost four million homes. The good news is, builders are working hard to get us there. The U.S. Census Bureau recently reported that the number of new construction homes starting to be built has increased by over 19%, which is the highest number we’ve seen in the past 14 years. 

”The bottom line is that patience is the key.”

Why does this matter if you’re considering buying a new home this year? New construction means more inventory on two fronts—both in actual new homes and the fact that many new construction homes are purchased by buyers who’re trading up. This means they're selling their prior homes and increasing supply further, especially in the starter-home market, which gives buyers even more options. Since new construction typically takes four to nine months to complete, we should see inventory level out as the year goes on. 

The bottom line is that patience is the key. Inventory will come; you just have to be ready for it. It’s important to start your home search early so you’re fully prepared to buy the perfect home once it comes on the market. 

Contact my team today to learn how you can prepare for buying or selling a home. We look forward to helping you navigate the market and providing the best exit strategy for your situation. Remember—it’s not the market, it’s the marketing that makes the difference.