It's an exciting time in real estate! According to the National Association of Realtors, sales in February were up the second highest they've been in the last three years. But the problem is finding inventory. As the economy recovers, buyers are snapping up inventory and according to NAR chief economist Lawrence Yun, that limited inventory is holding back the market in many areas.
According to Yun, the sure fire way to alleviate this shortage is to build new homes.
"Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels," he said. "Most local home builders are small businesses and simply don't have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market."
That could bode very well for our local market indeed.
Check out the full article on the NAR website here and watch this video commentary from Mr. Yun about supply constraints slowing pending sales in the Western market.