Factors Behind Housing Supply Shortage: A Jeff Rutt’s Explanation The absence of adequate homes for sale in any property market adheres to demand and supply laws, ending up in a higher price for each unit. Nonetheless, what may lead to low housing stocks while there are many prospective home buyers out there? Let’s see Keystone Custom Home’s Jeff Rutt try to explain low housing inventory below: Insufficient Equity For someone to be able to sell a home, the need to have sufficient equity on the property. Yet, statistics indicate that 20% of homeowners that are yet to fully repay their mortgage do not have sufficient equity on their homes to sell, Jeff Rutt asserts. Due to these homes not being ready for sale, you should expect a low housing supply.
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When a lot of people don’t have an issue with selling their property except for the fact that the timing is not right to make profit, you’re going to have less homes on sale in the property market. Almost a decade ago, millions of housing units were bought to the crest of the real estate boom. A lot of people that bought properties during that time are still waiting for the perfect timing to make profit, including when there are no underwater mortgages. This also an issue that causes housing inventory problems and higher prices. Lack of Buyer Interest For sure, only a couple of properties would be built in the wake of reduced buyer enthusiasm, and that does influence housing inventory. As per Jeff Rutt, issues like price fluctuations and lack of enough homes have resulted in buyers, who subtly influence the property market, holding off their aspirations to buy. The Allure of Keeping Investment Properties A lot of people are making good money as landlords due to the lucrative rental fees they get every month. Similarly, there’s the potential for properties to soar in value, attracting a better selling price in future. As such, individuals that acquire residential investment properties, for example single-family units, may not be ready to put these on sale in the foreseeable future. Once more, that’s a way to explain low housing inventory. Insufficient Property Developers Due to the lack of sufficient property developers, there’s a shortage of housing inventory, Jeff Rutt from Keystone Custom Homes suggests. It just happens that the 2007 economic meltdown led to the closure of many smaller property developers, with those surviving being forced to sell off their inventories of prime land set aside for future development. If you’re reading reviews of Jeff Rutt from Keystone Custom Homes today, you’ll see that he’s been involved in the development of high quality residential properties that suit detailed specifications provided by owner, from the ground up.