Still asking yourself why you can’t find a house to buy? Homes are selling fast and often well over asking price. Finding a home to buy is possible and we'll share some options you might not have considered.
Real estate inventory has reached a historic low resulting in a housing crisis.
- Low Inventory
- High Buyer Demand
- Low Interest Rates
- Slow-Moving New Construction
Have you considered these options as you seek to buy a home in 2021:
- Silver Tsunami
- New Construction
- 3-D Printed Homes
The silver tsunami is the exodus of baby boomers as they move into nursing homes, assisted living, retirement homes, etc., forcing them to sell their homes. These homes may be one of your most affordable options as they may need some work due to lack of care and upgrades by elderly owners. The silver tsunami is likely to carry on for the next 20 years, providing lots of opportunities for home buyers to purchase a home.
Across the nation, single-family building permits were 13% higher in 2020 compared to 2019, illustrating the need for new housing. Even more significant, metro areas saw a 42% increase in permits. According to a recent report from the National Association of Realtors®, new construction will be especially high in the following cities:
Atlantic City, NJ
New homes come with fewer issues than existing homes, but the cost of new construction is increasing. Rising lumber costs will add $36,000 to most single-family homes being built, according to a recent report from CNBC. Former President Trump’s 24% lumber tariff against Canada is also contributing to the rising cost of lumber. Fortunately, the Commerce Department reduced the tariff to 9% at the end of 2020 saving home builders and home buyers a significant amount.
3-D homes are another way new construction can meet the needs of home buyers. Texas and California are constructing 3-D homes made from a concrete-type material or a polymer. These homes are completed several months faster than traditional homes and are typically 10-30% cheaper, according to Jason Ballard, CEO of ICON 3-D homes. In addition, these homes use less lumber and require few workers, important in an industry hurting for laborers.
When homeowners stop making mortgage payments, the bank takes control of the home to ensure they get the money they’re due. This is known as a foreclosure. The lender will try to sell these homes for less than they’re worth to satisfy the debt and try to make a profit.
Many homeowners were protected during the pandemic thanks to forbearance programs and foreclosure moratoriums, but when the programs run out later this year you may have an option to bid on a foreclosed home.
Above all else, have patience as you search for a home to buy. Work closely with your real estate agent to learn which options are available and when to pounce. The opportunity to buy a home might be closer than you think.