With record-low inventory, how are you supposed to find your next home?
Did Houses Just Disappear?
The short answer is "no". After the housing market crash in 2008, home builders never got back to their full production for fear of having too much inventory on hand. The United States went into the pandemic with too few homes being built and no way to ramp up to meet demand once the buying frenzy kicked off.
Couple that with the desire to leave crowded cities and work-from-home, and all the single-family homes were snapped up faster than ever. Potential sellers saw this shortage happening and became worried that, if they sold, they wouldn't be able to find their next home. This led to even fewer homes being listed, which is where we are now.
So What Do We Do About It?
We've identified the problem, but we need solutions. After all, what good is there to just complain and sit back on the sidelines? If you're looking to sell your home and upsize, downsize or just simply move to another area, your biggest challenge is going to be the time it takes to find your next home. Here's what we're suggesting to your clients to help them succeed in their selling/buying process:
Rent-back - Also known as "post-settlement occupancy", the rent-back is a period of time in which, after you sell your home, you rent it back from the new owners. In Maryland, rent-back agreements can be as long as 60 days after settlement, and then you'll need a traditional lease for any period longer than that. If you're searching for your next home in an area where it will take less than 60 days to close on your next home, this is a great option.
Stay With Friends/Family - Okay, hear me out. I know this isn't ideal, but it really is the best option if you need more time for your home search. You'll save money and have a more competitive edge as buyers. It's just a few months of sharing your living space to set you up for finding your dream home, and actually winning it!
Rent a Temporary Apartment/Airbnb- This is obviously the more expensive option and you can find short-term rentals that allow you to book months at a time. You'll have the best luck during the off-season and usually have to contact the owner by email/message to check if they allow this.
If you're not sure which option is best for you, or want more details, I highly recommend contacting your agent and discussing these options. If you do not have an agent and are curious what it would look like for your particular situation, contact me and I'll be happy to provide a free consultation!
For The First-Time Homebuyers Out There
Who you work with matters. You need an agent and a brokerage, like Showcase Real Estate, that has multiple ways to find you your first home. Want to learn about our Off-Market Matchmaker program? Contact me today to find out how we connect our buyers with off-market properties.
