The missing housing market may not be noticeable at first, but now it is gaining traction and many are starting to take notice. Why is there a missing market? Is there a bizarre explanation for this kind of phenomena? Or is it just a simple explanation away from being solved?
The Missing Housing Market Is Bigger
According to Real Estate by Boston.com & Globe.com, there is an alarming disappearance of housing properties for sale in may urban and suburban areas in most cities around the world. Unlike years prior wherein that kind of properties is abundant in many major cities globally, it is now a dying market within the real estate industry.
Even if the current global pandemic has not affected the missing housing market phenomena, wherein many are expected to either vacant or lose their homes in the cities. When a buyer or a renter tries to find one nowadays, they might be shocked to experience having a hard time getting one as there is only half of what is currently available in the market. This makes securing a housing property (for either purchasing or renting) a difficult thing today, especially in major urban areas and some suburban areas as well.
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Due to the current pandemic, the supply of new and available housing properties has continued to decrease steadily, as many people are now staying indoors more than ever. Additionally, due to what's happening right now, many are having second thoughts of moving out in order to secure a place to stay in.
The other problem with most homeowners of today is that many are the so-called "baby boomers", which is the age group of people at most risk with the current pandemic. Due to that, many of them are staying in their homes to avoid being in the public and many are choosing not to give up their homes and move out, as the risk of them getting the disease is very high. This results in a domino effect wherein both new buyers and renters alike are unable to secure a new housing property.
Is a Housing Shortage In The Horizon?
According to Keeping Current Matters, there is another reason as to why there is a shortage of supply of available housing properties. The said reason why is that many housing properties are simply selling faster than the available supply in the housing market inventory. Do take note that the current housing market of today is very competitive, both buyers and sellers alike.
However, the good news is coming to the real estate market as the eventual distribution of COVID-19 vaccines around the world is expected to ease the tension in the market. Many experts in real estate are optimistic that the vaccine will be a huge help in the recovery of the economy.
And having a good economy means that the people will start spending again, which can result in many desiring to move to a better home. When then happens, the flow in the housing market will return to normal, easing the supply as a result.
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