Lots of Buyers - Too Few Homes!

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Lots of buyers too few homes!

• Dunhill Homes

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Introduction
You learned all about it in your high-school
economics class  Supply and Demand  A decrease
in the availability of a product or service
creates more of a demand for that product or
service.  That increase in demand translates into
higher prices.  And when supply is short, people
are more willing to pay more if a product or
service is something they desire, badly
enough.   A clear case-in-point involves the
Dallas housing market right now, the
availability of new homes in this thriving part
of the Lone Star State is limited.  This fact
does not present an ideal scenario for
home-buyers who, typically, desire an array of
homes, from which to choose, within their
respective budgets.  Their frustration, due to
limited selection, doesnt show signs of waning. 
Some home-buyers who want to get into
home-ownership before any more rises in interest
rates takes place by the Feds, are even willing
to offer more than the asking price to eliminate
the competition with other prospective buyers.
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Compelling Figures
One home-buyer in the Dallas area, Sandra Curry,
states  The process has been a roller coaster
ride.  Every offer I have made has been above
asking price well above!  Curry finally made
an offer on a new home that was accepted.  Then,
there is Realtor, Ben Lauer, of Lauer Real Estate
who says  Home sellers these days are often
selling their listings above market rates,
knowing the demand is massive.  And when
speaking to sellers, Lauer suggests they ask
considerably more and buyers dont hesitate to
make the deal!
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Appraisal Angst
Since the sellers market is in full swing in
North-Central Texas as well as so many other
regions of the US, buyers and sellers face a bit
of conundrum banks will lend only the amount of
money that corresponds with a homes appraised
value and since homes asking prices may well
exceed an appraisal, what we have, then, is as
monetary gap.  The million-dollar question
arises Who pays the difference between the
appraisal and the asking price?  At times, buyers
are asked to pay the difference and at other
times, the buyer and seller work cooperatively
and pay 50/50.  Again, buyers are willing to
shell out more money for their dream home while
the opportunity is still financially feasible. 
Home-buyers know interest-rate hikes are
uncertain and that uncertainty is driving many
to shed the hesitation to buy a new home, now,
since buying could be even more of a pocket-book
challenge, down the road.
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What Determines Housing Shortage?
Several things come into play regarding the
limited number of new homes in the North-Central
Texas area  (1) the cost of building materials
and land are on the increase  (2) new state and
government mandates tack on significant expenses
with new-home construction and (3) there exists a
diminished labor market of skilled trade
professionals, or sub-contractors.  Additionally,
due to the current supply-and-demand scenario,
those trade professionals brick masons,
framers, landscapers, etc   are charging more
for their services.  Rising labors costs are, out
of necessity, embedded into every new home.  As
one home-builder in Dallas said  I have to pay
a painter 50 more than I did just 5 years ago. 
Local Realtors support that sentiment and
reiterate that cost inflation on the front end
has resulted in a very real impact for
home-builders and home-buyers, alike.
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o-few-homes/