Three years ago who would have thought we would be having an inventory shortage this soon? Well here we are... back into a “multiple offer” market again!
Below are just 5 of many reasons we have an inventory shortage
1. Slowdown of New Home Starts- Nationally we need 1.6 million new home built per year to keep up with new buyers coming into the market (population growth) For the last 4 years we have averaged only 600,000 new home starts nationally ( a 1 million per year shortage )
2. “Boomerang Buyers” – A boomerang Buyer sold their home between 2006 and 2011 and lost equity… and many had to short-sale…these sellers have been renting but many have now recovered financially and are back in the market buying homes
3. Eco-Boomer Generation- This will add 80 million buyers to the market in the age range of 18-31 over the next several years…educate yourself on this generation…they have very specific needs (see handout)
4. Increase in Life Expectancy- in 1970 the estimated life expectancy in the US was 70…in 2012 it was 79. People are living longer and staying in their homes longer.
5. Immigration- The US is still the Promised Land for many… in 2012 the estimate was 1,000,000 legal immigrate came to the United States…depending on who you believe, if you add illegal immigrates to the mix the totals are closer to 2,000,000
The time has come to get pro-active in the market…you can’t sit back and wait for the MLS to provide you with listing inventory…if you have a Buyer who needs a home but the “perfect match” is not in active inventory… Get busy searching for expired and withdrawn inactive inventory which matches the buyers want list.
Awaken Dormant Sellers by sending letters out to neighborhoods the buyers like letting the “non-active” sellers know you have a buyer in-hand ready to buy!
Get out there and get busy!
Eddie Brown ©2014