This article from HousingWire examines the current state of the U.S. housing market, in which tight inventory supplies are forcing home builders to keep pace with the sustained high demand. It is discussed how this inventory crunch is not just impacting homeowners, but also homebuilders. The ensuing high demand for homes creates an opportunity for homebuilders to capitalize on growth in the market.
Homebuilders have the potential to benefit from the situation as tight inventory is expected to continue for many months. Low levels of housing supply keep house prices high and housing supply low, which leads to increased customer demand for new homes and higher profits for homebuilders. There is also a potential for steady growth. With potential buyers still looking to buy despite the current market conditions, this provides an opportunity for builders to concentrate on long-term growth.
It is also noted that when it comes to low housing inventory, some regions of the country are more impacted than others. Overall, inventory is expected to remain low in the mid-priced (under $400,000) range. Most of this shortage is concentrated along the West Coast, particularly in California. The shortage in California is real estate is expected to remain elevated until late 2021, at least.
The article concludes with a discussion of strategies homebuilders can use to capitalize on the low housing inventory environment. One of these strategies is to work with developers in finding successful strategies to construct homes in more densely populated areas, something that would give them an edge over other builders. Investing in technology is also recommended, something that will ensure a reliable supply of building materials and construction labor. Finally, leveraging the assistance of sales consultants is also advised in order to reach potential buyers and capitalize on the high demand for homes.
In summary, this article from HousingWire examines the current state of the U.S. housing market in which low levels of inventory are creating an opportunity for homebuilders to benefit from the sustained high demand for homes. It is discussed how builders can capitalize on the opportunity for long-term growth as well as offering strategies such as working with developers, leveraging technology and using sales consultants. With potential buyers still looking to purchase, this environment provides the chance for builders to reap the rewards of increased profits.
You can read this full article at: https://www.housingwire.com/articles/low-housing-inventory-a-win-for-homebuilders/(subscription required)
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