The dog eat dog real estate market
A couple years ago I predicted there would be a housing shortage. I was not alone in this stance, others had the same grumblings while much of America scoffed. It mathematically made sense. Although inventory was high, due primarily to the rise in foreclosures, new home construction was at a stand still. We need a minimum number of housing starts just to keep up with new new family starts and we were not even close. During the recession a lot a families joined forces, family members stayed together under one roof to pool resources, young adults moved back home, we cut back and cooled our heals. Now the previously stifled demand has been unleashed and there is simply not enough inventory. The lack of new construction is not the only reason. There are still a lot of folks out there who are upside down in their mortgage and don’t want to damage their credit and short-sale their homes so they are staying put while the market rebounds. While at the same time there are a whole lot of buyers hoping to be the first out of the gate and are able to get their foot in the door before a home goes pending. In the under $200k price range it feels like a day at the races with no time to contemplate whether or not you like the horse, you had better just get on! There is no hemming and hawing, no giving it a night to sleep on it and may of these first time buyers are too gun shy and are going to end up being renters. It is interesting times we live in!
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