Housing Inventories Are Low: Why Is That?

All across the nation, housing inventories are low, and you can’t help but wonder why? When you dig a bit deeper, however, it starts to make sense. If you’re on the market to buy and/or sell a house, your dream home is out there, but you may have to spend a bit more time finding it. An experienced Chicago appraiser will help ensure that the value is there in the home you’re considering and that your dream house really is a dream. 

Sellers Aren’t Listing

The pandemic has put many, many plans on hold, and this includes plans to buy and sell houses. Some sellers are simply waiting to list their homes because they don’t want to deal with the additional layer of complication that is COVID-19.

Demand Is High

When mortgage rates dip as low as they are right now, it motivates buyers to hop in and get busy buying. All those purchases have left the shelves bare, and there simply aren’t as many houses to sell. 

Construction Is Down

We have population growth, but we don’t have the new construction to support it. Construction slowed way down in the economic downturn in 2008, and it hasn’t bounced back in full force. FRED provides a great visual related to housing starts (new housing units started) that puts this downturn in graph form. Further, the pandemic has slowed some recent construction.

A Trend Toward Staying Put

There is a trend for people to stay in their homes for longer stretches before uprooting, and this translates to less movement on the market. The following two factors seem to also be pushing the envelope:

• The global pandemic leaves many families simply feeling safer staying put for now.
• Some smaller cities and towns are experiencing upticks in population, which is likely in response to the feeling of safety they tend to foster and to the fact that the pace is slower and less anxiety-provoking (at a time when everyone’s anxiety is at an all-time high). 

There’s Nowhere to Go

Many potential sellers who would normally list feel like the market is too tight and that they’ll end up with nowhere to go if they do list. All told, the stress of living inside a global pandemic is rocking the housing market in surprising ways. 

Larger Homes Meet Families’ Needs

Larger homes have been extremely popular for a while now. While families used to move into starter homes and then take several graduated steps toward a larger home that allowed them to spread out, in recent decades, many families have gone for the gusto upfront and are already in larger homes that comfortably accommodate their growing families. 

Allstate Is Here for All Your Chicago Appraisal Needs

At Allstate Appraisal, we understand exactly how important your home purchase is, and we’re committed to wielding our impressive experience to meet your appraisal needs throughout the purchase process. We have been in the appraisal business for more than six decades, and we have the professional expertise you’re looking for.  To learn more, please don’t hesitate to contact us today.