In a housing market with a relative lack of inventory, buyers have a hard time finding a house to call their own. In 2021, the metro-area home builders built and sold more houses than in any year in the past decade. The 6,618 new houses were about 10% more than in 2020, but it still did not help alleviate the shortage caused by the Great Recession of 2007-2009 and increased by intense demand.
Mortgage rates are expected to have a minimal effect on demand, but buyer interest is predicted to decrease if these rates reach above 4%. A much more influential factor is rising home prices. This will result in a significant decline in demand, as higher prices will make it difficult for buyers to purchase a home.
The damage of the Great Recession has been slow to repair in the homebuilding industry. Experts say that one of the reasons for this is that there are not enough people in the industry to work. There is a lack of labor on the market, which makes it difficult for builders to get their homes built. In addition, low mortgage interest rates play a role in this issue.
Because of material shortages and logistics problems related to the coronavirus pandemic, it’s been difficult for builders to get the materials they need. This is going to slow down new home construction until building materials are readily available again.
Despite all the problems related to the supply of existing homes for sale and the slow pace of new home construction, homes are selling at an average of 18 days on the market during 2021. Currently, the numbers indicate that sellers are driving the market and real estate agents predict that the trend will continue throughout this year.
Source: Home building and home sales soar into 2022 as productive as in 2021 (oklahoman.com)
