High Prices, Low Availability. Why?
Housing prices are high due to many reasons happening at the same time. It is an economic fact, that as demand increases, so does the price. Since the demand for single family homes is high right now so are prices, increasing as much as 30% over the last 10 years. The pandemic forced households to spend more time at home and this increase in demand for housing services may have drawn buyers into the housing market. Lower interest rates have made financing easier and less expensive, so more people are jumping into the market. Current homeowners are reluctant to list their home for sale during a pandemic, due to financial uncertainty. Generous mortgage forbearance programs and the foreclosure moratorium may also have reduced supply, among other factors, according to the Federal Reserve website.
Houses are in short supply due to several factors. There is a lack of buildable land, or the land is too far from where homebuyers want to purchase a home. Zoning laws prohibit building a home in an area zoned industrial or a wetland. The price of building materials is increasing exponentially, making it difficult for contractors to complete a home for the selling price. Contractors are also having difficulty hiring and keeping enough employees.
Yes, home prices are high, and inventory is low, but Darcey Edwards of Edwards Realty Trust has the contacts, experience and expertise to help you buy or sell a home. Contact her today and get started.
Edwards Realty Trust
5193 N.E. Elam Young Parkway, Suite D
Hillsboro, OR 97124