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Reasons for Low Housing Inventory: Jeff Rutt’s Take

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. But why would there be lack of enough homes for sale when a lot of people are looking to buy? According to Jeff Rutt from Keystone Custom Homes, below is how to explain low housing inventory:

Insufficient Equity

For in individual to be in a position to sell a home, they ought to have sufficient ownership of 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. Because such properties have not yet entered the market, you may anticipate a level of shortage.
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Waiting to Sell for Profit
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In the event that many individuals would be inclined to sell their homes, but they won’t do it since it’s impossible for them to make profit now, you certainly expect a shortage in real estate listings. About 10 years ago, millions of homes were bought at the peak of the property boom. Plenty of families that acquired homes during that period are still counting on the right timing to make returns, even where there are no underwater loans. That’s another reason for housing shortage that leads to higher prices.

Buyers’ Hold Off

Of course, very few homes would be built when there’s low buyer interest, and that does affect housing supply. 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 Appeal of Retaining Investment Properties

Becoming landlords to make good money is attractive to many people, considering the monthly rental payments they can potentially receive. Still, properties always have the potential of rising in value, and that means higher future valuations when selling. 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.

Shortage of Property Developers

Jeff Rutt from Keystone Custom Homes asserts that the unavailability of enough home builders is tied to the low housing supply phenomenon. 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 go through reviews of Jeff Rutt from Keystone Custom Homes now, you’ll notice that he’s been taking part in the construction of superior quality residential properties from scratch according to plans approved by owner.