[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f239bk4wdrg20p":3,"$ffeh0925h8cuz":47,"$fbwk2pqjjqsc7":51},{"item":4,"previous":35,"next":41},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":33,"updatedAt":34},1872,"patience-is-the-key-to-buying-a-home-this-year","Patience Is the Key to Buying a Home This Year","The question many homebuyers are facing this year is\u003Cem>, “Why is it so hard to find a house?”\u003C\u002Fem> We’re in the ultimate \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F03\u002F29\u002Fwhat-it-means-to-be-in-a-sellers-market\u002F\">sellers’ market\u003C\u002Fa>, which means real estate is ultra-competitive for buyers right now. The \u003Cem>National Association of Realtors\u003C\u002Fem> (NAR) notes homes are getting an average of \u003Ca href=\"https:\u002F\u002Fcdn.nar.realtor\u002Fsites\u002Fdefault\u002Ffiles\u002Fdocuments\u002F2021-03-realtors-confidence-index-04-22-2021.pdf\">4.8 offers\u003C\u002Fa> per sale, and that number keeps rising. Why? It’s because there are so few houses for sale.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F04\u002F27160508\u002F20210428-KCM-Share.jpg","The question many homebuyers are facing this year is\u003Cem>, “Why is it so hard to find a house?”\u003C\u002Fem> We’re in the ultimate \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2021\u002F03\u002F29\u002Fwhat-it-means-to-be-in-a-sellers-market\u002F\">sellers’ market\u003C\u002Fa>, which means real estate is ultra-competitive for buyers right now. The \u003Cem>National Association of Realtors\u003C\u002Fem> (NAR) notes homes are getting an average of \u003Ca href=\"https:\u002F\u002Fcdn.nar.realtor\u002Fsites\u002Fdefault\u002Ffiles\u002Fdocuments\u002F2021-03-realtors-confidence-index-04-22-2021.pdf\">4.8 offers\u003C\u002Fa> per sale, and that number keeps rising. Why? It’s because there are so few houses for sale.\u003C!--more-->\r\n\r\nLow inventory in the housing market isn’t new, but it’s becoming more challenging to navigate. Danielle Hale, \u003Cem>Chief Economist at realtor.com\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Fwww.realtor.com\u002Fresearch\u002Fweekly-housing-trends-view-data-week-apr-17-2021\u002F\">explains\u003C\u002Fa>:\r\n\u003Cblockquote>“\u003Cstrong>\u003Cem>The housing market is still relatively under supplied\u003C\u002Fem>\u003C\u002Fstrong>\u003Cem>, and buyers can’t buy what’s not for sale. Relative to what we saw in 2017 to 2019, \u003Cstrong>March 2021 was still roughly 117,000 new listings lower, adding to the pre-existing early-year gap of more than 200,000 fresh listings that would typically have come to market in January or February\u003C\u002Fstrong>. Despite this week’s gain from a year ago, we’re 19 percent below the new seller activity that we saw in the same week in 2019.\u003C\u002Fem>”\u003C\u002Fblockquote>\r\nWhile many homeowners paused their plans to sell during the height of the pandemic, this isn’t the main cause of today’s huge gap between supply and demand. Sam Khater, \u003Cem>Vice President and Chief Economist \u003C\u002Fem>at \u003Cem>Freddie Mac, Economic Housing and Research Division,\u003C\u002Fem> \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fperspectives\u002Fsam_khater\u002F20210415_single_family_shortage.page\">shares\u003C\u002Fa>:\r\n\u003Cblockquote>“\u003Cstrong>\u003Cem>The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes\u003C\u002Fem>\u003C\u002Fstrong>\u003Cem> . . . That decline has resulted in the decrease in supply of entry-level single-family homes or, ’starter homes\u003C\u002Fem>.’”\u003C\u002Fblockquote>\r\nWhen you consider the number of homes built in the U.S. \u003Ca href=\"https:\u002F\u002Fwww.census.gov\u002Fecon\u002Fcurrentdata\u002Fdbsearch?program=RESCONST&startYear=1959&endYear=2020&categories=COMPLETIONS&dataType=SINGLE&geoLevel=US&notAdjusted=1&submit=GET+DATA&releaseScheduleId=\">by decade\u003C\u002Fa>, the serious lack of new construction is clear (\u003Cem>See graph below\u003C\u002Fem>):\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F04\u002F20210428-MEM-Eng-1a.png\">\u003Cimg class=\"aligncenter wp-image-44291\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F04\u002F20210428-MEM-Eng-1a.png\" alt=\"Patience Is the Key to Buying a Home This Year | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>The number of newly built homes is disproportionately lower than the rate of household formation, which, according to the \u003Ca href=\"https:\u002F\u002Fwww.census.gov\u002Fdata\u002Ftables\u002Ftime-series\u002Fdemo\u002Ffamilies\u002Fhouseholds.html\">\u003Cem>U.S. Census Bureau\u003C\u002Fem>\u003C\u002Fa>, has continued to increase. Khater also \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fperspectives\u002Fsam_khater\u002F20210415_single_family_shortage.page\">explains\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“\u003Cstrong>Even before the COVID-19 pandemic and current recession, the housing market was facing a substantial supply shortage\u003C\u002Fstrong> and that deficit has grown. In 2018, we estimated that there was a housing supply shortage of approximately 2.5 million units, meaning that the U.S. economy was about 2.5 million units below what was needed to match long-term demand. Using the same methodology, \u003Cstrong>we estimate that the housing shortage increased to 3.8 million units by the end of 2020\u003C\u002Fstrong>. A continued increase in a housing shortage is extremely unusual; typically in a recession, housing demand declines and supply rises, causing inventory to rise above the long-term trend.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nTo catch up to current demand, \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fperspectives\u002Fsam_khater\u002F20210415_single_family_shortage.page\">\u003Cem>Freddie Mac\u003C\u002Fem>\u003C\u002Fa> estimates we need to build almost four million homes. The good news is builders are working hard to get us there. The \u003Cem>U.S. Census Bureau \u003C\u002Fem>also \u003Ca href=\"https:\u002F\u002Fwww.census.gov\u002Fconstruction\u002Fnrc\u002Fpdf\u002Fnewresconst.pdf\">states\u003C\u002Fa>:\r\n\u003Cblockquote>“\u003Cem>Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,766,000. This is 2.7 \u003C\u002Fem>\u003Cem>percent \u003C\u002Fem>\u003Cem>(±1.7 percent) \u003C\u002Fem>\u003Cem>above the revised February rate of 1,720,000\u003C\u002Fem> . . . \u003Cem>Privately-owned housing starts in March were at a seasonally adjusted annual rate of 1,739,000. This is 19.\u003C\u002Fem>\u003Cem>4 percent \u003C\u002Fem>\u003Cem>(±13.7 percent) above the revised February estimate of 1,457,000\u003C\u002Fem>. . . .”\u003C\u002Fblockquote>\r\nWhat does this mean? Lawrence Yun, \u003Cem>Chief Economist\u003C\u002Fem> at NAR, \u003Ca href=\"https:\u002F\u002Fwww.linkedin.com\u002Fposts\u002Flawrence-yun-592a76146_good-news-on-a-potential-turn-for-the-better-activity-6788821150567829506-nWur\u002F\">clarifies\u003C\u002Fa>:\r\n\u003Cblockquote>“\u003Cstrong>\u003Cem>The March figure of 1.74 million housing starts is the highest in 14 years\u003C\u002Fem>\u003C\u002Fstrong>\u003Cem>. Both single-family units and multifamily units ramped up. After 13 straight years of underproduction – the chief cause for today’s inventory shortage – \u003Cstrong>this construction boom needs to last for at least three years to make up for the part shortfall\u003C\u002Fstrong>. As trade-up buyers purchase newly constructed homes, their \u003Cstrong>prior homes will show up in MLSs, and hence, more choices for consumers\u003C\u002Fstrong>. Housing starts to housing completion could be 4 to 8 months,\u003Cstrong> so be patient with the improvement to inventory\u003C\u002Fstrong>. In the meantime, construction workers deserve cheers.\u003C\u002Fem>”\u003C\u002Fblockquote>\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nIf you’re planning to buy this year, the key to success will be patience, given today’s low inventory environment. Let’s connect today to talk more about what’s happening in our area.\r\n\u003Ch6>Note: The original version of this blog included a graph showing total number of \u003Cem>housing units\u003C\u002Fem> built, which included houses and apartment units. The revised graph, shown here, includes only \u003Cem>single-family homes, \u003C\u002Fem>which more accurately explains the current situation.\u003C\u002Fh6>","\r\nIf you’re planning to buy this year, the key to success will be patience, given today’s low inventory environment. Let’s connect today to talk more about what’s happening in our area.\r\n\u003Ch6>Note: The original version of this blog included a graph showing total number of \u003Cem>housing units\u003C\u002Fem> built, which included houses and apartment units. The revised graph, shown here, includes only \u003Cem>single-family homes, \u003C\u002Fem>which more accurately explains the current situation.\u003C\u002Fh6>","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F04\u002F20210428-MEM-Eng-1a.png",false,[17,21,25,29],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},11,"First-Time Buyers","first-time-buyers",{"id":26,"name":27,"slug":28},38,"Move-Up","move-up",{"id":30,"name":31,"slug":32},45,"New Construction","new-construction","2021-04-28T10:00:31Z","2021-04-29T15:58:46Z",{"id":36,"slug":37,"title":38,"featuredImage":39,"publishedAt":40,"contentType":10,"isVideo":15},1871,"will-the-housing-market-maintain-its-momentum","Will the Housing Market Maintain Its Momentum?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F04\u002F26121805\u002F20210427-KCM-Share.jpg","2021-04-27T10:00:51Z",{"id":42,"slug":43,"title":44,"featuredImage":45,"publishedAt":46,"contentType":10,"isVideo":15},1873,"is-home-price-appreciation-accelerating-again","Is Home Price Appreciation Accelerating Again?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F04\u002F28134947\u002F20210429-KCM-Share.jpg","2021-04-29T10:00:17Z",{"cover":48,"open":49,"shareSpread":50},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[52,56,57,61,65,69,73,74,78,82,83,87,91,92,96,100,104,108,112,116,120,124,128,132,136,140,144,148,152,156],{"id":53,"name":54,"slug":55},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":58,"name":59,"slug":60},6,"For Sellers","sellers",{"id":62,"name":63,"slug":64},7,"Foreclosures","foreclosures",{"id":66,"name":67,"slug":68},8,"Infographics","infographics",{"id":70,"name":71,"slug":72},9,"Home Prices","home-prices",{"id":22,"name":23,"slug":24},{"id":75,"name":76,"slug":77},34,"Senior Market","senior-market",{"id":79,"name":80,"slug":81},35,"Mortgage Rates","mortgage-rates",{"id":26,"name":27,"slug":28},{"id":84,"name":85,"slug":86},41,"For Sale by Owner","for-sale-by-owner",{"id":88,"name":89,"slug":90},42,"Featured","featured",{"id":30,"name":31,"slug":32},{"id":93,"name":94,"slug":95},52,"Luxury \u002F Vacation","luxury--vacation",{"id":97,"name":98,"slug":99},53,"Rent vs. Buy","rent-vs-buy",{"id":101,"name":102,"slug":103},80,"Time-sensitive","time-sensitive",{"id":105,"name":106,"slug":107},81,"Outdated","outdated",{"id":109,"name":110,"slug":111},147,"Internal","internal",{"id":113,"name":114,"slug":115},148,"Do Not Autopost","do-not-autopost",{"id":117,"name":118,"slug":119},320,"Inventory","inventory",{"id":121,"name":122,"slug":123},321,"Agent Value","agent-value",{"id":125,"name":126,"slug":127},322,"Affordability","affordability",{"id":129,"name":130,"slug":131},323,"Buying Tips","buying-tips",{"id":133,"name":134,"slug":135},324,"Downsize","downsize",{"id":137,"name":138,"slug":139},325,"Economy","economy",{"id":141,"name":142,"slug":143},326,"Equity","equity",{"id":145,"name":146,"slug":147},327,"Forecasts","forecasts",{"id":149,"name":150,"slug":151},328,"Selling Tips","selling-tips",{"id":153,"name":154,"slug":155},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":157,"name":158,"slug":159},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]