Explaining Low Housing Supply: A Jeff Rutt’s Perspective
The lack of enough homes for sale in the property market obeys demand and supply rules, leading to a higher price for every unit. Nonetheless, what may lead to low housing stocks while there are many prospective home buyers out there? According to Jeff Rutt from Keystone Custom Homes, below is how to explain low housing inventory:
For in individual to be in a position to sell a home, they ought to have sufficient ownership of the property. However, studies suggest that 20% of people still paying their mortgage have not acquired enough equity on their real estate to be able to sell. Because such properties have not yet entered the market, you may anticipate a level of shortage.
Banking on Profitability
In case many homeowners would be willing to sell their property were it not for the fact that it’s not yet time to profit, there will certainly be less properties on sale in the real estate market. Almost a decade ago, millions of housing units were bought to the crest of the real estate boom. Plenty of families that acquired homes during that period are still counting on the right timing to make returns, even where there are no underwater loans. This also an issue that causes housing inventory problems and higher prices.
Buyers’ Hold Off
For sure, only a couple of properties would be built in the wake of reduced buyer enthusiasm, and that does influence housing inventory. Jeff Rutt suggests that aspects such as price volatility and unavailability of units for sale have got buyers, who are indirect drivers of the property market, delaying their purchase decisions.
The Perks of Owning Investment Real Estate
Becoming landlords to make good money is attractive to many people, considering the monthly rental payments they can potentially receive. Similarly, there’s the potential for properties to soar in value, attracting a better selling price in future. So, people that buy residential investment properties, such as single-family homes, are not likely to offer these for sale any time soon. Also, that’s an issue that may explain low housing inventory.
Lack of Enough Builders
According to Jeff Rutt from Keystone Custom Homes, the low housing inventory issue may be explained by the lack of enough property developers. It just happens that the 2007 economic meltdown led to the closure of many smaller property developers, with those surviving being forced to sell off their inventories of prime land set aside for future development.
Once you look at reviews of Jeff Rutt from Keystone Custom Homes, you’ll realize that he’s been participating in the construction of excellent quality residential units from the ground up as per the requirements specified by owners.
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