The Housing Shortage is Hanging On

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The housing shortage is hanging on

• Dunhill Homes

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Introduction
According to professionals in the housing market
and home-construction industry, it is a sellers
market, which is what home-buyers dont,
particularly, want to hear.  In-spite of the fact
that the real-estate market on a national level
is robust, overall, buyers are feeling
frustration with limited properties coupled with
the price of homes steadily inching upwards. 
Realtor.com tells us that this current trend is
holding on like super-glue and shows no signs of
letting go in the near future.  In fact, the
consensus is that the shortage of homes will get
worse before it gets better.  
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Purchasing During a Shortage
Johnathon Smoke, chief economist of realtor.com,
doesnt mince words  Theres no relief in
sight.  Were not building enough housing.  Yes,
the pace of home-construction is biting the dust
of buyers desires.  Smoke goes on to say that,
nationally, the US is 500,000 homes short of
where it should be when compared to population
growth.  One significant indicator of the
strength of the pace of home construction into
the future is the number of issued building
permits.  During May of 2016, a meager 107,800
were issued and that translates to a 3.7 drop
from the same time during the previous year when
111,900 were released. If Jonathon Smoke is
accurate with his perspective that the
availability of new homes will be worse six
months from now, it would mean that prospective
home-buyers will be facing higher prices, fairly
soon.  
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The Stats Tell All
According to the US Department of Commerce, only
81,000 newly-constructed homes were completed in
May of 2016 which accounts for a 3.3 decrease
from the May 2015 number of 83,900.  Someone
might, correctly, tell you  Well, hey! The rate
of new-home construction for April went up! 
When you put that comment in the proper context,
however, you become aware that construction
typically reaches its zenith during the warmer
months of the year, in-spite of any existing lag
in the home-building industry.   It isnt just
buyers from coast to coast that are feeling the
angst regarding home availabilities going down
while home prices go up many builders are
confronted with the same frustrations and they
are, also, faced with stringent, new regulations
that make building homes significantly more
costly.
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age-is-hanging-on/