Factors Behind Housing Supply Shortage: A Jeff Rutt’s Explanation
The unavailability of sufficient homes for sale in real estate follows demand and supply curves, resulting in a higher cost for each unit. But why would there be lack of enough homes for sale when a lot of people are looking to buy? Here’s how to explain low housing inventory from the perspective of Jeff Rutt from Keystone Custom Homes:
For in individual to be in a position to sell a home, they ought to have sufficient ownership of the property. Yet, statistics indicate that 20% of homeowners that are yet to fully repay their mortgage do not have sufficient equity on their homes to sell, Jeff Rutt asserts. Due to these homes not being ready for sale, you should expect a low housing supply.
Waiting to Sell for Profit
In the event that many individuals would be inclined to sell their homes, but they won’t do it since it’s impossible for them to make profit now, you certainly expect a shortage in real estate listings. Millions of properties were purchased approximately 10 years ago when the housing boom was at its peak. A lot of people that bought properties during that time are still waiting for the perfect timing to make profit, including when there are no underwater mortgages. This also an issue that causes housing inventory problems and higher prices.
Lack of Buyer Interest
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 Allure of Keeping Investment Properties
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. As such, individuals that acquire residential investment properties, for example single-family units, may not be ready to put these on sale in the foreseeable future. Also, that’s an issue that may explain low housing inventory.
Lack of Enough Builders
Jeff Rutt from Keystone Custom Homes asserts that the unavailability of enough home builders is tied to the low housing supply phenomenon. 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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