Local realtor weighs in on current housing shortage
SOUTH BEND, Ind. -- It is a frustrating time to be a buyer! But the housing shortage has been impacting the market for nearly a decade now. The housing market currently has more buyers than sellers. The shortage first started back in 2009 due to the housing crisis of 2008.
At that time, over a million homes were built annually to keep up with the growing population. Now, down 40%, roughly 600,000 homes are built a year. The shortage first felt starting in 2018 but has since been amplified due to the pandemic. The supplies and cost of construction have skyrocketed alongside worker shortages making building that much costlier.
All of this at a time when housing is short, but the need is great. The population experienced a second ‘baby boom’ between the years 1988 – 1994. This generation is now reaching the age of 33, or the average age of a potential buyer.
Experts saying the homes just are not available, even here in Michiana.
“Typically, for the market to be considered a healthy market we want at least 6 to 6 and half months worth of available houses, and right now we are about at the 3 to 4 months mark, 3 months for more rural areas and 4 months for metropolitan areas. So in some areas we are about at half as many homes as of what we need for buyers that are out there shopping,” says Jennifer Schmitt, Red Bow Realty Team Manager and Licensed Realtor.
At a time when houses are selling, it is best to work with a licensed realtor. Knowing the trends and competing prices within your area is crucial. Because for some, selling now might be the best option.
“It is a good idea to remember that real estate is a strong, steady investment. If sellers feel like they want to wait to sell their houses, they might not make as much on their house at that time. Now is a great time to maximize the amount of return they will get on their initial investment, by maximizing the equity they will get out of it,” says Schmitt.
You can find Schmitt and her team here.