thenewgreathomebuilder

 

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:

 

Inadequate Equity

 

For someone to be able to sell a home, the need to have sufficient equity on 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. With such homes not yet available for sale, there's bound to be a shortage in the market.

 

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.  Millions of properties were purchased approximately 10 years ago when the housing boom was at its peak. Very many people that purchased properties at that time are to date waiting for the right moment to make profit, even if their mortgages are not underwater. This also an issue that causes housing inventory problems and higher prices. Know how to explain low housing inventory here!

 

 

Buyers Refrain

 

Obviously, nobody would build homes for sale when a lot of buyers are holding off, and that can impact on housing supply. 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

 

A lot of people are making good money as landlords due to the lucrative rental fees they get every month. 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. Once more, that's a way to explain low housing inventory. Know more facts at http://www.britannica.com/EBchecked/topic/289177/inspection.

 

Shortage of Property Developers

 

Jeff Rutt from Keystone Custom Homes asserts that the unavailability of enough home builders is tied to the low housing supply phenomenon. As a matter of fact, the 2007 financial crisis caused a lot of smaller home builders to collapse, and the few that endured resort to selling off their prime properties put aside for later 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.