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According to a survey by relators.com, the struggle of Americans looking for starter homes may soon come to an end.
Unlike the 8% home that hits the real estate listing in a typical year, this year it is expected to touch 10%. The survey conducted, also suggests that 58% of the houses that is set to hit the market this year, are going to be valued below $350,000.
George Ratiu, senior economist at Realtor.com said: “The fact that we’re seeing such a significant potential in entry level and affordable inventory getting ready to come to market is to me a really encouraging sign,”
Bidding wars have been triggered in certain parts of the USA in recent months as a result of soaring demand and a limited number of properties available.
The online real estate company, Zillow Group Inc has presented data that suggests constraints in inventories are set to ease. Zillow expects to see a 30% rise in new inventory from late February to late march, a sign that the industry is returning to the traditional pattern of home listings in the spring.
Inventory Logjam
The logjam on the supply side that came into being before Covid19 is still not going to end any time soon. Since the 2010s, when the number of new homes built was slashed in half in comparison to the previous decade, the housing market has been struggling with demand ever since.
The home owners participating in the Realtor.com survey made it clear that, home sellers, who planned to put their house on the market in the next two to three years, are refraining from doing so, as they are not able to find a new homes within their comfortable price range.
Now is a good time for those, who are able to sell their existing homes. In March, the median selling price, jumped to 17.2% over-year to $329,100, the highest in records dating back to 1999, according to National Association of Realtors.
HarrisX was commissioned by Realtor.com to conduct a national online survey of consumers. The total sample size was 3,998 adults, of which 657 were potential home sellers during the week of March 29.
