Explaining Today’s Low Housing Supply
Wondering why the supply of homes for sale is limited today? There are a few factors at play. Lack of building over time, the mortgage rate lock-in effect, and people staying in their houses longer are three of the main reasons why supply is low nationwide.
As you can see, the lack of new home construction over time, the mortgage rate lock-in effect, and increased tenure are three of the main reasons why the housing supply is low nationwide.
Additionally, Southwest Florida is primarily a second-home or vacation marketplace. Many SWFL homeowners own their properties outright, and they might even generate rental income that covers other homeowner costs. When you consider this fact, you can understand that there isn't a sense of urgency to sell for many of these second-home owners. This often creates an even greater gap in inventory for many second-home markets like ours.
We hope you found this information helpful in better understanding our local and national real estate market. Have questions? Of course you do! We encourage you to contact us with any and all questions regarding the real estate market. Who knows, your question might be the topic of our next blog post. Our goal is to spread helpful information for homeowners and homebuyers to make informed decisions while having expert assistance at their side. Please don't hesitate to reach us at 239-472-1950 or [email protected].