Why Your Home Has the Edge in Today’s Market

As the housing market remains tight, your home has a unique advantage right now. Even though the number of listings has increased slightly from last year, the demand from buyers still outpaces the available inventory. If you’re thinking about selling, you’re in a prime position to make your home shine.

Why Are There So Few Homes Available?

1. Underproduction of Homes: Over the past decade, housing construction hasn’t kept up with the number of new households. According to Zillow:

   “In 2022, 1.4 million homes were built, the strongest construction year since the Great Recession. Yet, the number of U.S. families grew by 1.8 million that year. This means we’re still not building enough homes to close the long-standing gap affecting affordability.”

2. High Building Costs: The rising costs of building materials, a tight labor market, and recent supply chain issues have all contributed to making home construction more expensive and slower, impacting the ability to meet demand.

3. Regional Disparities: Certain high-demand areas are especially impacted, with buyers flocking in faster than homes can be built. Job growth and new housing permits often don’t align in these regions, leading to limited supply and increased competition.

The Scope of the Housing Shortage

According to a Real Estate News report, the U.S. housing market faces a shortfall of roughly 3.3 million homes. (see graph below):

And looking ahead, experts like John Burns Research and Consulting (JBREC) project the need for 18 million new homes over the next decade to meet demand, accommodate new families, and replace older properties.

So while there may be slightly more homes for sale than a year ago, there still aren’t enough to satisfy demand. If you’re ready to sell, this market condition can work in your favor.

Key Takeaways

If you’re considering listing your home, the tight inventory means more potential buyers are likely to compete for it, pushing interest—and possibly prices—higher. Because of this ongoing deficit, homes like yours stand out, giving you a potential edge in negotiations.

Each housing market is unique, so collaborating with a knowledgeable real estate agent who understands your local market is essential. They’ll help you set an optimal price and develop a strategy that attracts the right buyers.

Bottom Line

While there are more listings than last year, overall inventory remains low. This makes it a strong seller’s market, giving you an advantage if you decide to list your home. Let’s connect so you can get expert advice on capitalizing on today’s market conditions.