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Real Estate Market Update: Second Half of 2018 Will See Housing Shortage End!

Extremely good news, don’t you think? Not that the so-called ‘bad news’ we’ve been experiencing was technically so horrible. Yes, the housing shortage was a bit of a downer for our real estate market, but as we mentioned before — it’s a typical real estate trend, completely natural, no need to panic.

The Better News Is Apparently Ambitious Home Development Will Squash That Home Shortage as Soon as the Second Half of 2018

So be patient. The first half of 2018 might be a bit challenging for prospective home buying-2home buyers, but stick it out — because come June this market will see the first net inventory gain of new homes since 2015.

Look for markets in Boston, Detroit, and Nashville to get the biggest boom once that inventory comes around, and it’s all thanks to, yes, serious bullish construction wanting to propel that industry forward. Because, yes, those home builders need to make money somehow, right? Way better than constantly shuffling people around in existing homes thanks to the record housing shortage dips.

The only downside to this coming trend is that home inventory relief will only at first hit the upper tiers, making their way down the lower end. This means if you’re looking for that ideal starter home somewhere around in June, you might still have some trouble. Expect price ranges for those new homes to hit the $350K and up range, but at the very least you’ll see home prices slow down to just 3.2% each and every year.

In Other Words, If You’re Looking for the Mid-price to Starter Home, Expect the Market to Get Just a Little Harder Before It Gets Better

Thankfully, that’s really not a bad thing. That’s just how the market trends work. And the good news is this: that’s how a healthy real estate market works. Things are looking up. Which is why you really should get in on the H.O.P.E. Program right now and start working toward your dream.

 

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U.S. Housing Inventory Drops to Record Lows, But There’s No Need to Panic

No, seriously — don’t panic. Resist. The fact is the real estate market is like an ocean. Lots of waves, ups and downs, and the correct pieces of the chessboard make the appropriate moves to keep the ocean moving the way it should. And at this point, we’re at a wave that’s so low that people are now beginning to wonder if anyone’s going to be willing to move out of their old home and buy a new one (that is, of course, the driving force of a burgeoning real estate market, however….)

The Fact Is More and More People Are Seeking to Increase the Value of Their Own Properties, Remodeling, Sticking It Out for the Long Haul, and That’s Not Necessarily a Bad Thingreal estate market-1

For the most part, it’s great for credit. Great for home values. Great for homeOWNERS (yes, not buyers, or sellers, but here’s the catch….). And what this type of wave in the real estate ocean will do is simply push developers and builders to find the ‘hidden gems’ in an industry that still needs a bit of a push.

Because the losers are, indeed, real estate firms. Realtors. Property management companies. When the inventory isn’t there, the buyers won’t be. Agents will struggle finding those buyers or sellers in the game. It’ll be tough to move this market, keeping the machine well oiled.

The reason, though, why this isn’t such a bad thing is that the one game-changer to keeping the market moving forward is that developers need to get creative. Build more. Since home renting’s still on the rise in a really big way, let’s get some more apartment complexes up. And it takes a little bit of faith….

Why? Because no one knows just what the buyer’s market really looks like.

We Can Say for Certainty, Though, That “If You Build It, They Will Come”

Millennials are still looking to break out. After all, home renting’s still growing (which is why the home buying market and inventory is still crawling). So target them. The millennials. The prospective home renters. Give them a reason to buy, or at the very least, pursue an RTO. Give them the kind of affordable housing that’ll whet their appetites.

We know: it takes a lot to build new opportunities. House flippers know this, but at the end of it all, the rewards are splendorous.

This is an excellent example of a housing market that isn’t necessarily a “dead horse,” or even a “lame one.” Just a horse that still hasn’t bolted out of the starting gate.

All it takes is one whip.

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The Current Housing Shortage Has a Silver Lining: Want to Know What It Is?

it’s no secret that the United States housing shortage is now quite the cry for buyers — for good reason. People want to buy. You’ve seen it all recently in this growing economy. It’s basically how the real estate market has been burgeoning for quite a while. There’s now a big problem, though, what with natural disasters, a new urban crisis, and new regulatory and tax questions. In a nutshell….

Less and Less Homeowners Are Looking to Sell Their Homes: the Essence of the Housing Shortage

We’re at a stage where millennials are looking to break out. Gone are the apartments. They’re moving out of mom and dad’s. The problem is the inventory — there are fewer and fewer houses on the market. And the worst of it is that could very well settle the market and bring it on a downswing. You and I both know we don’t want that.

As the headline mentions, though: there is a silver lining. And a beautiful one. If someone could figure out how to pull that silver lining from the sky, of course!

Believe it or not, but there is something great about having a housing shortage — it’s called opportunity. And it falls right on the laps of developers. Hard thing to have on laps, but the truth is no longer will the investment ever be on a billion-dollar tech startup. That’s old hat.

Nowadays the economy looks to develop the mid-priced single-family home that a buyer can actually afford. We just need someone to develop them!

You could be looking, possibly, at urban row housing. Transit-oriented development. Remember: millennials these days often take the bus or train. Or even bike to work. Certain starter homes could break big. Even affordable rental units could be the exact push this market needs as long as developers can find the sweet spot:

It’s All About the Right Price…. The Right Land Costs…. The Right Location…. And the Right Amenities

We know it’s a gamble. Above all else, developers take that gamble big time. They’re banking on whether or not developments hit home, populating with people who would be proud to be called a first-time home buyer. That’s like a magical phrase in this real estate industry.

And know this: the higher-end market still looks good. Nothing wrong there. But this market is like a very big house. The foundation, for the most part, will be the middle ground. When there’s nothing left to work with, foundation weakens!

The Real Good News Is You Better Believe Someone Out There Is Checking the Writing on the Wall

It’s a goldmine. We’re talking boku bucks. People want to make some real coin? Give those prospective home buyers something to buy! And the money will just roll in along with that nice silver lining.