Demand for Homes Outnumbers Supply

Lawrence Yun, chief economist of the National Association of Realtors, writes in Realtor Magazine that the housing recovery is surpassing expectations. Increased demand and minimal new-home construction have increased home prices at a near double-digit pace. 1.5 million new houses are needed each year to keep home-price gains at the ideal level of 3-5 percent annually. As of March, this number finally exceeded the 1 million mark for the first time in five years, but still failed to reach 1.5 million. Home prices are expected to continue to rise even more over the next couple of years, as many buyers chase after too few sellers. While increasing home values are good for sellers, price increases often exceed income growth and thus put buyers at a disadvantage. This situation hinders the economy and leads to inflated price increases in some parts of the nation.

Those considering selling your home, you may want to take advantage of the excess housing demand. Contact me to see what I can do for you.

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