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Hi, Cindy Luoma is selling Columbia’s best homes with EXP Realty and i wanted to talk to you today about the current housing supply and what that means to sellers here in Columbia, SC. Let’s take a look.
As we’ve been talking about it for many months, the hottest topic in real estate is the lack of supply of homes. There essentially are less homes available than the number of buyers and it’s created quite a frenzy! In January 2021 we had the lowest inventory in 22 years.
I can say that I certainly had many clients last year that were hesitant to list their homes during a pandemic, but we can’t blame all of the shortage on Covid 19. Actually our low supply goes hand in hand with the number of new homes built over the past decades. Due to this building gap between 2001 to 2020, we have a cumulative shortage of 5.5 million units.
Between 2018 and 2020 the housing supply shortage increased from 2.5 million to 3.8 million units. In addition, 40 % of all homes built were starter homes. In the 1980s only 7% of homes built were starter homes in 2019. Another factor is that 7.2 million millennials are entering the market and searching for a new home. From 2018 to 2020 the pandemic and other factors caused a 52 percent supply decrease. Though supply and high demand has caused a 12 percent price increase in homes. In fact the national association of realtors adds that in order to fill this shortfall gap, and i quote, “new construction would need to accelerate to a pace that is well above the current trend to more than 2 million housing units per year”. So as you’re driving around Columbia, SC, it may look like there’s new neighborhoods popping up everywhere but there’s still not quite enough. Latest indications nationwide are that inventories are starting to inch up just a tad. We are seeing inventory levels of existing homes inching up because buyers are a bit weary of not being able to secure homes after making many offers. Also many Americans did not take vacation last year and are determined to do so this year. So we’re not surprised by a little bit of a leveling off. However inventories are still at an all-time historical low. So what does all this mean to you? Well just because we’re starting to get back to normal, it doesn’t mean you’ve missed a chance at selling your home in one of the greatest markets in history. As a matter of fact, last month interest rates dropped again below 3 % and that sparked some more interest from buyers. Let’s not forget too, that prices have continued to increase and we don’t see those abating at any time soon. Sso you’re sitting on some great equity in your home.
So let’s connect and talk about how you can list your home and take advantage of the current inventory levels. I hope you’re having a great day and I’ll talk to you soon.