The economy is beginning to resemble the beginnings of the Great Recession, as discussed in previous blogs. There are several reasons as to why this is happening, which will be laid out throughout this blog. The housing market is not solely shaped by the economy; there are different trends every year that contribute to the housing market’s status.
Starting off the list is the strong sales builders have been having so far this year. Sales rates are currently through the roof, demand is creating a more expensive market due to the limited inventory which has been accompanied by limited labor. With limited labor, this slows the process of home building across the country. Without skilled labor, builders are not able to keep up with the demands of the market, driving prices up.
There are a few solutions to this problem, which many people have already started doing. One is usually seen in apartments in larger cities, living with one or more other people as roommates to split costs. Another solution is the possibility of remodeling old homes which has become more popular with such low inventory available in the housing market.
If labor and inventory do not rise, it will continue to harm the real estate market. It is important to keep in mind that there are ways to lessen the effect of these prices and will just cause more caution in buyers. Things like green energy will also help lower housing costs in the future, making it less expensive to produce homes on the whole. Our agents here at BridgeView are well equipped and ready to help you navigate this difficult market! Stop in today for the North Country’s best assistance office.