Why such a low number of real estate offers on the market?

House for sale

Currently, the number of homes on the market is far from sufficient to meet demand. We are in a very competitive seller's market, which makes finding accommodation particularly difficult. Although this is not an unprecedented phenomenon, it makes buying a home particularly difficult. You might be wondering what exactly is causing this extreme supply crisis. In this article, we'll expand on the factors behind the declining supply of homes across the country, and it's not just due to the pandemic!

 

1. Fewer new homes

In recent years, the construction of new homes has declined significantly, which contrasts sharply with the situation of new construction 15 years ago, when there were too many new homes available on the market. This excess inventory was one of the reasons for the housing crash of 2008. The glut of homes caused home values ​​to depreciate.

Since 2008, the new construction market has not fully recovered and left a multi-year inventory shortfall leading to the pandemic.

 

2. Buyers must have a huge margin of negotiation

It is increasingly common for buyers to show themselves ready to buy at the price, without even trying to negotiate! More than ever in a position of strength, sellers can even afford to decide to whom they will sell their property. Only the best applications have a chance of being retained. This competition is fueled by the tightening of access to credit, which, by de facto excluding the poorest households from the market, has caused an overrepresentation of the wealthiest buyers.

 

3. Changing priorities

The confinements and remote work have redefined what home means to millions. Buyers have shifted their priorities and sought homes with larger lots and more square footage to accommodate lifestyles that favor spending the majority of time at home.

Those who lived in city centers with smaller spaces bought many homes in places with a better quality of life.

Another influential trend is that people are waiting longer on average to sell their homes now.

 

En conclusion

Even in the most difficult situations, there are opportunities to be seized. Your estate agent will advise you on the type of properties you can buy and at what price. Work with an agent or real estate team well-connected and experienced can also avoid a lot of disappointment.

Taking advantage of today's low credit rates while buying smart is possible. That said, it is imperative to have a team of real estate professionals of confidence on which you can rely to best manage your purchase.