The pandemic is driving a change in demand for suburban locations and single-family houses in the real estate market. Yet, the supply of available houses for sale is falling short of demand. According to realtor.com, by 2022, there may be a shortfall of up to 6.5 million houses. Rising building costs and supply chain delays exacerbate the situation. Despite this, the forthcoming buying season is predicted to be competitive, with purchasers still looking for a house.

Competition in the Market

Due to the scarcity of available properties, the market has become extremely competitive, with purchasers unable to find homes within their price range. This has led to bidding wars with properties selling for more than their asking price. According to the survey, this trend is expected to continue, as cheap mortgage rates and high demand drive competitiveness. Buyers should be prepared to respond swiftly and make aggressive bids in order to get their preferred home.

The Impact on First-Time Homebuyers

The scarcity of housing affordability is especially difficult for first-time homeowners. It may be tough for them to enter the market due to increased competition and rising pricing. According to the survey, first-time homebuyers should adapt their expectations and examine various types of housing, such as condominiums or townhomes. They may also need to consider alternate areas, such as smaller places or suburbs, in order to find a property within their budget.

The real estate market is experiencing a scarcity of available properties, which is escalating competition and pricing. Despite this, the forthcoming buying season is predicted to be competitive, with purchasers still looking for a house. Buyers must be prepared to respond swiftly and make significant bids in order to be successful in this market. To discover a house within their budget, first-time homebuyers may need to adapt their expectations and examine different types of homes and locations. Generally, the real estate market remains dynamic, requiring purchasers to be adaptive and aware in order to take advantage of the possibilities available.

Sources:

Jones, H. (2023, March 8). US Housing Supply Continues to Lag Household Formations; Multifamily Construction Offers Alternatives. Realtor.com Economic Research. https://www.realtor.com/research/us-housing-supply-gap-march-2023/

Zillow. (2023, February 16). Expect a competitive shopping season, despite few available homes. Prnewswire.com. https://www.prnewswire.com/news-releases/expect-a-competitive-shopping-season-despite-few-available-homes-301748359.html