Low inventory makes it difficult to buy residential real estate

On Behalf of | May 5, 2022 | Real Estate Law |

If an individual is looking to buy a home in Florida this month, he or she knows that this is a difficult undertaking now. Not only are prices at some of the highest levels they’ve ever been, but overall inventory is low. This makes it difficult to buy residential real estate, and it can impact the interests of the average buyer simply trying to relocate or purchase a home for the first time.

What does this mean for the average buyer?

For the average buyer, the most significant impact from low inventory will be higher home prices. One reason for the current issues related to inventory is that since the housing crisis of 2008, there have been fewer houses built than are necessary to meet long-term housing demand. While construction is increasing, many new projects are apartments or multifamily dwellings instead of single-family homes.

Another factor driving the current housing crisis is the number of remote workers and millennial buyers entering the market. More people now are interested in moving out of cities and into larger homes in more affordable areas, something many are now able to do because of their remote work capabilities. Experts believe that it may be years before inventory catches up to demand.

Protecting the interests of buyers

Any individual seeking to buy a home will benefit from understanding how to protect his or her legal and financial interests. When the market is competitive and inventory is low, a Florida buyer may be more likely to make imprudent decisions. A residential real estate attorney can provide one with the guidance he or she needs when making these important choices.

Archives