It’s no secret that our country has been in the throes of a housing inventory crisis over the past several years. It started before 2020, after which quickly changing housing needs combined with historically low mortgage interest rates created the perfect storm – a real estate frenzy that lasted for two years. Now that interest rates have normalized and companies are starting to require employees to come back into the office, the ebb and flow of real estate sales is at least starting to look more familiar. Yet one thing remains that cannot be ignored: low home inventory.
In addition to the shortage created between 2020-2022, two more factors stand out as role players in today’s current inventory crisis: Builder PTSD from 2008 and challenges obtaining building material. In the years preceding 2008, it was common for builders to build homes prior to securing the buyer. Today, builders are more likely to wait until they have secured multiple buyers for a section of their community before they start building. This creates security for the builder and their investors that they will be paid immediately upon the home’s completion. This also helps reduce the building costs, which is doubly important because of increases in material production and delivery time.
So what can you do to find a home today when you’re not seeing what you want to buy online? Start by partnering with a vetted and experienced Realtor who, in addition to searching the Multiple Listing Service (MLS) for potential properties, will employ a few more strategic moves, the first of which is Realtor to Realtor networking. Agents are always in communication with each other and they know they are each other’s best resources for the inside scoop on what homes will be listing soon. Another strategy is to search for off-market properties through agent networking, neighbors, friends, family and good old communication. There are a variety of situations where homeowners want to sell, but don’t want their home to be publicly listed. They will often ask people to spread the word about their home, and if approached by a potential buyer or buyer’s agent, they would gladly entertain selling their home.
Inventory will start shaking loose by mid-Spring, but with that will come more competition from other home buyers. If you want to be ahead of the Spring market and be in line for the best properties both on and off the market, your best move is to partner with a trusted Realtor ASAP.