Whether you are a buyer or seller, the housing supply shortage impacts both ends of the real estate market. There is always the choice to buy new construction or an existing home for buyers, and both options have their own pros and cons. And with a housing shortage in effect, there are many more potential buyers out there than there are sellers. So what does this mean for sellers?
As a seller, you may have heard that the housing supply shortage is a good thing for you. It could mean that your home will get more offers. Whereas buyers who bid on an existing home may generally have more room to negotiate on price, the seller may have the upper hand now. However, this trend may not stick around. The real estate market may have its ebbs and flows, but it’s not going anywhere. There is always a need for new homes as the population increases and more children become adults who will need a home to buy.
Why Is There A Housing Supply Shortage?
While the pandemic is partly the cause, the truth is that the shortage has been building for years. The pandemic did cause some sellers to hold off on putting their homes on the market due to the uncertainty of the economy. However, the real cause may be due to the long-term decline of the construction of single-family homes.
While it could take years for the housing construction industry to catch up, we are already starting to see an increase in new construction as home builders ramp up construction based on demand. The mortgage rates are still low, so buyers still want to take advantage of that while they can. However, new construction homes can’t bridge the gap all on their own. New construction can only do so much to ease the short-term supply shortage. More existing single-family homes must come on the market to help with this demand.
What It Means For Sellers
So what does this mean for sellers now? It means your existing home is needed and highly valued in the real estate market. Buyers still want to take advantage of those low mortgage rates while they still can. And with a housing supply shortage of available homes for sale, your home may get a lot of offers and even be subject to a bidding war! You may have the advantage of turning down negotiations in price or upgrades if you choose.
So what does this mean for sellers now? It means your existing home is needed and highly valued in the real estate market. Buyers still want to take advantage of those low mortgage rates while they still can. And with a shortage of available homes for sale, your home may get a lot of offers and even be subject to a bidding war! You may have the advantage of turning down negotiations in price or upgrades if you choose.
Another bonus is homeowners can take advantage of the expected sustained growth of home prices to build on their equity. You can use your growing equity to make upgrades to your home to prepare for it to go on the market. Then, with the continued gap in the home supply shortage and buyer demand, you could sell your current home for a great price, then move into a better home!
A Look At The Dallas-Fort Worth Market
The DFW metroplex has been in great demand due to so many California transplants. Not only that, but many people are moving from New York and other states to join the great state of Texas. The DFW area is always in high demand as it’s the hub of many large corporations. Young professionals may be transferred to the area for promotions or general office reorganizations from their companies. With so many people moving to the area, the DFW metroplex will continue to be a sought-after location for buyers. If you’ve got an existing home to sell in the DFW area, you’ve got a great advantage!
Talk to a realtor today and make a plan for the best time to sell your home to take advantage of these seller advantages.