We continue to hear that the housing market is unbalanced—that there are more buyers than sellers. There is no single reason for the situation we are in today. Rather, the situation has developed this way because of several combined factors that suggest that the market will not return to equilibrium any time soon. Although this varies widely by location and price range, here are some reasons that this might be happening.
Reason #1: Demographics.
The first reason for the shortfall is purely demographic. As “Boomers” age, they are not following the trends of previous generations. Many are staying in the workforce far longer than their predecessors, and because of their postponed retirement, they don’t feel compelled to downsize their living situation. In fact, almost two-thirds of Boomers plan to age in place and do not plan to move even after retirement. Without this anticipated supply of homes from downsizing Boomers, there aren’t enough homes for move-up buyers. This limits the supply of homes for first-time buyers.
Reason #2: We don’t move as often as we used to.
As an overall nation, people aren’t moving as often. After experts have analyzed mobility, it’s clear that people aren’t required to relocate as frequently for work that matches their skillset. Because there has been a drop in geographic-specific jobs, are simply moving with less frequency.
Reason #3: Builders aren’t building as many homes.
Many builders are not building as many homes as they were in the past, because of three main factors: land supply/regulation, labor, and materials. The costs related to building a home have risen rapidly since the Great Recession, and this is keeping many builders from building to their potential. In addition, to justify the additional costs, many of the homes that are being built are larger and more expensive, which makes it difficult for many first-time home buyers that cannot afford the price of a newly constructed home.
So, what should you do in this kind of market? My advice is to focus on what works for your specific needs and if you want to explore what your options are, give me a call. I’m always up for a discussion about which approach might be right for you.
**Content an excerpt from blog posted 8/2017 by Mathew Gardner, Chief Economist for Windermere Real Estate
Planning on building a new deck? There are a few must-knows before you dive in and tackle a deck building project on your home. Here are some tips that will help you plan and prepare for a successful DIY project.
Tip #1: Research what design will work best for your space.
First, you’ll need to decide exactly where your deck should be placed. Do you want it freestanding, attached to a back door, or on the second level of your home? Research what design and style will work best. A well-designed deck will help you create a list of materials based on that design. It will also ensure that the outside area of your home is put to use the best way possible without any empty or wasted space.
Tip #2: Research the permit process.
Check out the local city building codes to see if you need a permit. Oftentimes a permit is needed if the deck is over a certain height. Be sure that you check what the total size requirements are for the city as well to make sure that it isn’t too large. When you go to sell the house and need to go through the inspection process, you don’t want to run into a problem because the permit process was not followed. In addition, you should always check to see what your Home Owner Association (HOA) rules are. Most HOA’s require approval of any outdoor project.
Tip #3: Research your material options.
When it comes to deck materials, there are a few different options. While wood is traditionally the type of material that is most used for decks, there is also composite decking that can be used. The cost is usually more than traditional wood, but if you plan on using the deck for a long time, it can actually save you money in the long run when compared to cleaning, refinishing, and replacing wood boards. Composite decking usually comes with a warranty as well, so you are covered in the event of something going wrong.
Once you have completed your research and have all of the proper tools necessary for launching into building the deck, you’re ready to get started. It’s a big project, but one that will pay off well! Having a beautiful deck is a great way to enjoy the great outdoors and it will also add value to your home.