Santa Barbara Real Estate

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Shortage of Homes?

April 4th, 2016 · No Comments · Santa Barbara Real Estate

NAR’s chief economist Lawrence Yun reported in the March/April issue of Realtor magazine , “that there’s a troubling shortage of homes nationwide.”  Housing costs are still climbing, and that rents rose at their highest pace in seven years while home prices nationally increased by 6 percent. That’s 3 times the pace of average wage growth. Housing costs are expected to keep rising in 2016 simply because not enough homes are being built. This might explain why rental vacancies are falling and housing inventories are shrinking. Local market conditions vary and States with declining populations are less affected. The American Dream of home ownership may be threatened if we don’t spur more housing development in the country soon.”

In Santa Barbara some buyers seem frustrated with the available  inventory due to the fact that many “new” listings are actually old listings relisted (some have been on the market for years).   Statistics continue to show that new listings that are priced competitively sell within a reasonable time frame, and for more money then when they languish on the market for indefinite periods.

2NARMarketTrendsOne20162NARTopReasonForDelays&CAncellations

National Association of Realtors national Market Pulse and Supply and Demand chart published March/April 2016

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