We are now seeing a problem with regards to real estate in the sense that it now not the lack of buyers, but the limited number of good properties that are put up for sale
The last known era of the bubble burst was in 2006, and back then, it was the problem F credit loans for the housing. But all of a sudden now, while the real estate industry is on the verge of recovering from its losses years back, this problem has now come up
The lack of good homes has really started to affect the market as the potential buyers are turned off and this means a loss for the real estate industry. It is said that the sharp drop in the number of homes along with the rock-bottom interest rates have created this fierce competition since people who now have money are looking to get good cheap homes
The effect of the problem a few years back has not materialized. The predicted foreclosure wave that was supposed to increase the number of available homes in the market had not happened, and the banks are also managing their books much better avoiding such a scenario
It also helped in that scenario that the investors who nearly went bankrupt back a few years ago, are now bankrolled by private equity firms and therefore the hedge funds are now utilizing the bank-owned or foreclosed homes and utilizing or turning them into rental homes which are preferable to some people in the market
Construction of homes is also a no-no as the increase in price of supplies for buildings have deferred people from putting up their own homes, and instead get the hassle free way of simply buying an existing house and stuffing it with their equipments. In fact, by April, it was recorded that the lowest level of home building since the Census Bureau was created was now up to this time. And remember, the bureau was started back in 1973. This is a historic low from that point
Many of the people who bought at the top of the cycle a while back are now having problems getting the rate they want if they are to sell their houses, as the plunge in rates and prices really drove them deep down. They won’t bother to sell their houses anymore as they will just incur losses instead of earnings in the process. This is really making things bad for the consumers and potential buyers who now have to wait months and continuous biddings for viable homes before they can get a response, and sometime a bad response is also meted out frustrating them and making them shy away from buying homes
In fact some of them have resorted to scouting out homes for sale even before they are put up for listing, as it is the fastest and viable way to be able to secure one as quick and without any hassles of bidding and such. It is not a highly recommended way, but if it works for them, then why not.