On The Horizon: The Perfect Storm

My wife recently sold a house above asking price in just 7 hours. With housing prices soaring and the existing inventory of newly built homes dwindling, this story feels all too familiar.

The National Association of Realtors reported that 99% of US cities experienced major housing price increases in Q1; 89% saw double digit gains.  My wife recently sold a house above asking price in just 7 hours. Sound familiar?  Yes, we’re back to 2006-7 with soaring housing costs. The national average sales price is now $397,800. Existing inventory of newly built and existing homes for sale has dwindled to less than 3 months of supply.  The only way to mitigate this problem is by building new homes at a faster pace.  Fortunately, NAHB is estimating that homebuilders are on track to build 1.7 million new homes in the next year, up 50% from last year.  Increasing supply will also release pressure on pricing. On the other hand, when you have the price of lumber skyrocketing over 280% and other building materials increasing substantially, then all bets are off.  Spiraling inflation will exacerbate housing prices.   Supply problems, inflation, and huge consumer demand are all coming together in a trifecta of pricing pain.  Watch this video to get another perspective:  click here.

Stay in the loop

Sign up for our newsletter

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
home
arrow
blog
arrow
Housing Market
calendar
May 18, 2021
clock
1 min read

On The Horizon: The Perfect Storm

The National Association of Realtors reported that 99% of US cities experienced major housing price increases in Q1; 89% saw double digit gains.  My wife recently sold a house above asking price in just 7 hours. Sound familiar?  Yes, we’re back to 2006-7 with soaring housing costs. The national average sales price is now $397,800. Existing inventory of newly built and existing homes for sale has dwindled to less than 3 months of supply.  The only way to mitigate this problem is by building new homes at a faster pace.  Fortunately, NAHB is estimating that homebuilders are on track to build 1.7 million new homes in the next year, up 50% from last year.  Increasing supply will also release pressure on pricing. On the other hand, when you have the price of lumber skyrocketing over 280% and other building materials increasing substantially, then all bets are off.  Spiraling inflation will exacerbate housing prices.   Supply problems, inflation, and huge consumer demand are all coming together in a trifecta of pricing pain.  Watch this video to get another perspective:  click here.

Sharing is caring
facebooktwitterlinkedin

Keep on reading

Related articles
Blog categories
Stay in the loop

Sign up for out newsletter

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.