Even though there are more homes available for sale than there were at this time last year, there are still more buyers than there are houses to choose from. So, know that if you’ve got moving on your mind, your house can really stand out.

There are several key reasons why there aren’t enough homes to go around and understanding them will help you see why the market is working in your favor if you’re ready to make a move.

What’s Causing the Shortage?

1. Underproduction of Homes: For years, the industry hasn’t built enough homes to keep up with demand. As Zillow explains:

“In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.”

2. Rising Costs: Building materials, labor shortages, and supply chain disruptions caused by the pandemic have all made it harder and more expensive to build homes. This can either limit or stop new home construction in some areas.

3. Regional Imbalances: Some markets are more affected by the shortage of homes than others. Popular and more desirable areas have more people moving in faster than new homes can be built. The number of new building permits issued doesn’t always keep pace with job growth in these regions, and that leads to even tighter markets and higher prices.

How Big Is the Problem?

According to estimates from Real Estate News, the U.S. is facing a housing shortfall of roughly 3.3 million homes, based on an average of several expert insights (see graph below):

a graph of blue squaresThis shows there’s a significant number of homes that need to be built just to meet current demand from buyers. But what about future demand?

According to John Burns Research and Consulting (JBREC), over the next 10 years, the U.S. will need about 18 million new homes to meet projected demand, including homes for new households, second homes, and replacements for aging or unusable homes.

So, even though more homes are on the market compared to last year, there still aren’t enough of them to go around. This is where you can really win if you’re ready to sell your house.

What You Need To Remember

If you’re thinking about selling, the shortage of homes for sale means your house is likely to get some serious attention from buyers. It’ll take years to climb out of this inventory deficit, and the market is still very tight. So, when buyers are competing for relatively few homes like they are right now, that creates more interest in the houses that are on the market, putting upward pressure on prices and ultimately working in your favor.

And since every market is different, it’s important to work with a real estate agent who understands local trends. They can help you price your house right and create a strategy to attract the right buyers.

Bottom Line

The market is primed for sellers, and your house can truly stand out. With inventory tight and demand still high, now is the perfect time to make your move. Let’s connect to ensure you capitalize on the current market conditions and sell your home for the best price possible. Reach out today to start the conversation!

Our priority is to take the load off your shoulders, so you can focus on family, work, and your own priorities while we handle all the details. From deciding which updates will add the most value to guiding you through the market, we're here to make sure everything goes smoothly. 

Individual Market Analysis for Eastside Cities (Live Statistics):

Sammamish:

        • Active Listings: Significant year-over-year increase in active listings.
        • New Listings: Higher number of new listings added in June 2024 compared to last year.
        • Pending Sales: Stable pending sales indicating steady buyer interest.

Redmond:

          • Active Listings: Increase in the number of properties listed for sale.
          • New Listings: A notable rise in new listings, reflecting active seller participation.
          • Pending Sales: Slight decrease in pending sales, possibly due to fluctuating mortgage rates.

Bellevue:

          • Active Listings: Substantial increase in active listings year-over-year.
          • New Listings: A significant influx of new listings in June 2024.
          • Pending Sales: Stable pending sales, showing consistent buyer interest.

Mercer Island:

          • Active Listings: Increase in the number of active listings.
          • New Listings: Higher number of new listings indicating seller confidence.
          • Pending Sales: Slightly lower pending sales, influenced by market conditions.

Kirkland:

            • Active Listings: Growth in the number of active listings.
            • New Listings: Increase in new listings compared to last year.
            • Pending Sales: Stable pending sales, with consistent market activity.

 

Our Listing Process

 

Our Core Values:

          • Loyalty: We are unwavering in our commitment to our clients, always putting their needs and interests first.
          • Honesty: We operate with the highest level of integrity, providing truthful and transparent communication at every step.
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We are committed to staying ahead of market trends and continuously enhancing our skills and knowledge to deliver unparalleled results. Our goal is to make the real estate experience as smooth and rewarding as possible, ultimately helping our clients achieve their real estate dreams.