The US housing shortage, which has created a heated market, could go on for years, according to a homebuilder CEO in a CNBC interview.
Taylor Morrison CEO Sheryl Palmer said in the interview,
“We are at multiyear lows as far as new and resale inventory, and, honestly, it’s going to be very difficult for us to make up the shortage, the deficit that we’ve been building up for more than a decade now.”
There are multiple factors that go into this housing deficit.
The National Association of Realtors(R) reports that growth in housing inventory has slowed over the past decade in part due to the 2008 housing crisis. The NAR report states that there has been what they designate an “underbuilding gap” of 5.5 million to 6.8 million housing units in the US since 2001. They believe this has been the basis for the current housing shortage the market is currently experiencing.
Interest rates have been very low, so it creates an atmosphere where buyers’ dollars can be stretched further. This can push prices up because buyers can see that their payments would be close to the same if the interest rates were higher yet home prices lower.
Listings were up in June, and I am hoping to potentially see more inventory in the Baltimore real estate market as summer continues into fall. We have seen in Maryland real estate that the past 12 weeks there have been more homes coming on the market than those receiving acceptable contracts. Prior to the past twelve weeks, there had been more than one pending sale for each house for over a year.
For more information about your Baltimore house value or buying a Timonium home, please contact me. I would be pleased to be of service!