According to the Fortieth Annual Edition of the National Association of Realtors Profile of home buyers and sellers survey – which tracked buyer behavior between July 2020 and June 2021 – the real estate market currently favors sellers:
Among repeat home buyers and sellers over the past year, a key driver of the move was the desire to live closer to family and friends, while an equally important motivator was the need for more. space or a larger house. The sellers as a whole were able to benefit from these transactions, typically earning the asking price and selling within a week.
Other trends identified by the organization come to the same conclusion:
For all sellers, the most frequently cited reason for selling their home was a desire to be closer to friends and family (18%), that it was too small (17%), and that the neighborhood had become less desirable (11%).
For recently sold homes, the final sale price was a median of 100% of the final listing price. Only 26% of all sellers offered incentives to attract buyers, down from 46% of all sellers last year.
“Fast-moving buyers during the pandemic, coupled with unprecedented inventory, resulted in the time-to-market drop to the shortest on record, which only lasted a week,” said Jessica Lautz, part of the National Association of Realtors.
As the Daily Wire previously reported, several macroeconomic trends are behind historically high house prices.
On the one hand, Federal Reserve Chairman Jerome Powell admitted to lawmakers earlier this year that asset purchases by the central bank are contributing to housing demand.
“House prices are going up, as you mentioned, by about 15%. This is a very high rate of increase, ”Powell told Senator Pat Toomey (R-PA) during a congressional hearing. “A number of factors contribute to this – monetary policy is certainly one of those factors. There are other factors as well: people have very strong balance sheets, so they are able to make down payments. There are also supply factors that limit supply, at least temporarily. “
Powell added that mortgage purchases are “a little more housing friendly” than other asset purchases – although that is “not their intention.”
On the other hand, there are not enough construction workers to meet the demand for housing. Builders and Associate Contractors – a professional group representing the non-unionized construction industry – confirmed earlier this year that housing shortages are linked to the distortion of the labor market.
“Construction spending is expected to reach $ 1.45 trillion in 2021, up 1.3% from 2020,” the group said in a statement. “In this scenario, the demand for jobs increases by 430,000 this year compared to actual employment of 7,829,000 in 2020. A higher growth rate scenario could bring the number of additional construction workers needed into 2021 to nearly a million. “
Indeed, the labor shortage in construction has pushed Zillow, an online real estate marketplace, stop his recent home buying spree.
“We operate in an economy constrained by labor and supply within a competitive real estate market, particularly in the construction, renovation and closure of spaces,” said Jeremy Wacksman, director of the operation of Zillow. “We have not been exempt from these market and capacity issues. “
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