If you are like most buyers you wonder about where the houses are for sale in today’s tight market; it can become a major headache for those seeking to purchase a home. There has been an increase in buyer demand, and the available supply for purchase has fallen behind.
The number of new housing permits issued before the great recession grew for fifteen years until 2005 (from 1.12 million in 1990 to a high of 2.16 million in 2005). During the period 1990 to 2005, the number of single-family permits given was more than double, at the same time, the amount of multi-family licenses increased by 49%.
As a result of the housing market crash, the amount of new homes permitted dropped to its lowest level in 2009. Since that point, supply and demand have been unbalanced with regards to new construction.
Construction of single-family homes has recovered much more slowly. The number of single-family housing units permitted in 2018 was barely half the number of those in 2005.
The Importance to Housing of New Construction
When the U.S. population grows, the need for new homes also grows. Right now, new construction is being outpaced by the increase in the nation’s population. The total amount of residential housing units permitted in 2018 was approximately equivalent to the number permitted in 1994, at a time when the country’s population was a significant 20% less than it is now.
Basically, the drop in home building in conjunction with a steadily growing U.S. population means that there is now a selling opportunity for homeowners looking to capitalize on the current market.
To Sum Up
If you’re thinking about selling your home to move up, it is an excellent time to receive a real return on your investment in a market with increased demand.
If you are in the greater Tampa Bay Area and are considering purchasing or selling a home, call me at 863-694-1232 or email me at [email protected]. I have years of experience in the real estate market and have the knowledge to advise you on today’s real estate trends. Get the information you need, call me today.
As your mortgage originator, my role is to help you navigate these changes and find the best possible mortgage rate. It’s crucial now more than ever to explore all your options and find the one that fits your specific situation. Buying a home is a significant decision, and I’m committed to ensuring you get the best deal.
Reach out today! Text me at 863-694-1232 or email me at [email protected].
Jonathan K. Davis, NMLS# 314966
Homefront Mortgage, LLC – Company NMLS: 1611328
