LIME REALTY GROUP is taking this blog today to continue our discussion about the housing shortage we’re experiencing on a national level.
Last time we talked about what builders could do to help alleviate the shortage of housing. It’s true builders could fill the inventory void by starting work on more properties and giving trade-up buyers more options that would help shrink the strain on previously owned properties.
While single family homes may have the strongest starts since 2007 and the number of new homes for sale the highest in almost 8 years, they’re still well off the peaks reached a decade ago.
Demand is certainly in place. The University of Michigan recently released a survey showing 80% of respondents in the first quarter of 2017 thought is was a good time to buy a house. That’s even larger than the numbers experienced in 2005 at the height of the last housing boom. At the same time, 66% believe now is a good time to sell. While that’s more respondents than last year and reflects higher prices, it’s below the 72% share recorded in 2005.
So this shows us demand is still higher than the inventory coming on the market. And let’s be honest, builders are going to build properties that will sell. They’re not going to build properties they can’t unload. In the Southern Utah market, the average new home price is still slightly out of reach of most new buyers on the market. However, their are starter properties like townhomes and condos all over the area that can be had for a relatively decent price.
Tune in tomorrow for another article in this series and send us your thoughts. And make sure you choose the clear choice for real estate in the Southern Utah area. Lime!