The U.S. housing market has seen a major shift over the past few years. The inventory of existing homes coming on the market is now at a two-decade low, yet the market for new homes is booming. This shortage of existing homes has put a strain on the housing supply in many areas of the nation.
The phenomenon is being attributed to several factors. A decrease in market activity during the pandemic, combined with the ever-growing demand for housing, has resulted in a shortage of existing homes on the market. Furthermore, the rise of home renovations and upgrades has further reduced the number of existing homes on the market.
This has resulted in an increased demand for new construction homes from those who are unable to find an existing house on the market that meets their needs. With various mortgage options available, this market shift promises continued growth in the construction and mortgage industry.
Key Takeaways:
• Market for new homes is booming
• Inventory of existing homes coming on the market is now at a two-decade low
• Decrease in market activity during pandemic and ever-growing demand for housing have resulted in a shortage of existing homes on the market
• Rise of home renovations and upgrades has furthered reduced number of existing homes on the market
• Increased demand for new construction homes
• Mortgage options available offering further promise of continued growth for the industry
You can read this full article at: https://www.housingwire.com/articles/new-home-sales-dip-2-5-in-june-but-continue-to-be-an-outsized-share-of-the-housing-market/(subscription required)
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