Why can’t I find a home to purchase within my price range?

Why are there so few homes listed on the market than there was a year ago?

Over the last few months, I’ve been asked this question a number of times. The answer is a difficult one. Many variables are contributing to the near record low inventory of homes for sale. Here are just a few:

1. In some areas fewer foreclosures are available. There are less distressed properties available for investors.

2. Many of the homes that would normally be available for buyers are being used as investment property, because the rents being paid are better than the banks interest rates.      

3. Constructions levels of new homes are at an all-time 50 year low.  There are not enough new homes being built to meet the demands of the buyers.

4. Many buyers who want to trade up cannot find homes that meet their needs or their budget, due to an escalation of asking prices.

5. In some areas there are still a lot of foreclosures, which are not a good fit for first time home buyers or buyers who are wanting to trade up.

The good news is:

1. Many experts are speculating that there will be an increase in new home construction taking place in the second half of the year, continuing on into the next year. Increased inventory of new homes will entice people to make a trade up purchase; allowing them to feel more comfortable about putting their home up for sale.

2. Low inventory pushes prices to rise. Many of the homes that had depreciated are now worth more, enticing their owners to sell.

Since the landscape of the real estate market is always changing, contact me so that I can give you the most up-to-date information on buying and selling property in Brookline, the Back Bay, Newton and the greater Boston area.