Last quote by Svenja Gudell
Svenja Gudell quotes
Inadequate supply of homes available to buy – especially at the entry-level end of the market – remains a huge problem.
Clearly, the market continues to underestimate just how much demand for homes is out there, even in the face of tight inventory and rising existing home prices that are now the highest on record.
Still, the market can't stay on this course forever, and continued inventory shortages are leading to intense competition, escalating prices and mounting buyer frustration, with the average home search over the past year taking more than four months.
At its worst, negative equity touched all kinds of homeowners in all kinds of markets. The type of community a given home was in – urban or suburban – mattered little. Fast-forward a few years, and the relative vibrancy of a given community and how it has performed over the past few years, and not necessarily its location in the city or suburbs, matters a great deal.
Broadly speaking, the falling homeownership rate is a sign that renting isn't only for those just starting out or making a transition, but is becoming an increasingly viable longer-term option for many households. It also means incomes are not yet rising quickly enough to broadly support new homeownership, and that inventory remains too tight to allow for meaningful access to affordable housing.
I think right now it has more than a novel feeling to it. I don't think people are expecting it to move the needle on any point.
The struggle will continue for home shoppers this summer. New construction has been sluggish over the past year; we're building about half as many homes as we should be in a normal market. There still aren't enough homes on the market to keep up with the high demand from every type of homebuyer.