What Is the Reason for Low Inventory in the Real Estate Market?
Why are there not enough homes for sale right now? Want to know the reason why inventory is so low?
Ryan Haley, broker and owner of Atlantic Shores Sotheby’s International Realty, lets us in on the top reason there’s such low inventory in the real estate market.
Much of the reason has to do with the number of homes that have been built over the last 14 years.
If we look at the figures for the last 50 years and the annual average at which homes have been built, we have been below that number for the last 14 years. The lowest number was recorded in 2012. Each year afterward, homebuilders have been scrambling to try to get back to that 50-year average.
It was only in 2021 that the market managed to get back to the 50-year average of the number of homes built per year.
The rather low number of homes built comes at a time when the market is experiencing the most extreme demand for housing. This has led to an all-time low when it comes to inventory.
If you have any questions about real estate, particularly in the Maryland and Delaware markets, please don’t hesitate to contact us and we’ll be happy to answer them for you.