The South Coast Real Estate Round-Up

Inventory Nightmare

In the ever-evolving landscape of real estate, there's a question that's been on many minds lately: "Where did all the houses go?" It's a query that strikes at the heart of housing shortages, affordability challenges, and shifting patterns in homeownership. Recently, a new statistic from Redfin has shed light on this phenomenon, revealing that today, the typical homeowner spends an average of 11.9 years in their home, a significant increase from the 6.5 years reported two decades ago. But what's driving this trend, and what does it mean for prospective buyers and sellers?

One key factor contributing to the longer tenure of homeowners is the changing nature of the real estate market. In quarter 4 of 2021, investors purchased a staggering 26.1% of lower-priced homes, up from 24% the year before. This surge in investor activity has had a ripple effect, further reducing opportunities for owner-occupied single-family home buyers. With investors snapping up properties for rental income or resale, the pool of available homes for traditional buyers has diminished, leading to increased competition and higher prices.

This trend has profound implications for both buyers and sellers. For prospective homeowners, especially first-time buyers or those looking to upgrade, the reduced inventory can make finding the right property a daunting task. With fewer options available, buyers may face bidding wars and inflated prices, making homeownership feel increasingly out of reach. On the other hand, for current homeowners considering selling, the scarcity of listings could present a lucrative opportunity. With high demand and limited supply, sellers may find themselves in a favorable position, able to command top dollar for their properties.

However, it's essential to recognize that while these market dynamics may present challenges, they also underscore the importance of strategic planning and informed decision-making. For buyers, working closely with a knowledgeable real estate agent who understands local market trends and can offer guidance on navigating competitive landscapes is crucial. Additionally, exploring alternative housing options such as townhomes, condos, or new construction developments may provide viable alternatives in areas where single-family homes are scarce.

For sellers, timing and pricing are key considerations. While high demand can work in favor of sellers, it's essential to strike the right balance between maximizing profit and attracting qualified buyers. Collaborating with a seasoned real estate professional who can help stage the home effectively, market it to the right audience, and negotiate favorable terms is invaluable in achieving a successful sale.

Ultimately, the phenomenon of homeowners staying in their properties longer and investors exerting greater influence on the market reflects the dynamic nature of real estate. By staying informed, adaptable, and proactive, both buyers and sellers can navigate these challenges and capitalize on opportunities in today's evolving landscape.

While the question of "Where did all the houses go?" may seem perplexing at first glance, a closer examination reveals a complex interplay of factors shaping the current state of homeownership. From shifting market dynamics to increased investor activity, understanding these forces is essential for anyone navigating the real estate landscape. By staying informed, leveraging expert guidance, and approaching transactions with patience and strategy, buyers and sellers alike can navigate this ever-changing terrain with confidence.

Posted by Christopher Terry on February 16th, 2024 6:10 PM


Since 2015, Real Estate Brokers have been on high alert about a scam targeting agents and their clients. Criminals have been hacking into the email accounts of real estate agents and using the information gained to convince people into a fraudulent wire transfer. 


The scam goes like this: you’ll receive an email that appears to be from an individual legitimately involved in the transaction, informing the recipient-- often the buyer--that there has been a last minute change to the wiring instructions. The victims of this scam follow the new instructions and wire funds directly to the hacker’s account. The scammer’s account will be cleared out in a matter of minutes and the money is almost always lost forever.

This time of year is one of the busiest for agents when it comes to closing on homes, so this is exactly the time of year that we tend to see an increase in this type of scam. Though none of EZ Home Search’s clients or agents have been involved in the scam, we like to inform our buyers just in case.

If you do find yourself in the middle of this email scam, there are ways to prevent yourself from being a victim. These tips include:

  • If you receive a suspicious email, immediately contact all parties to all of your upcoming transactions and inform them of the possibility of this fraud. Attorneys, escrow agents, buyers, sellers, real estate agents, and title agents have all been targeted in these scams.

    If possible, do not send sensitive information via email.  If you must use email to send sensitive information, use encrypted email.

  • Do not trust contact information in unverified emails. The hackers will recreate legitimate-looking signature blocks with their own telephone number and website.

    Never click on any links in an unverified email.  In addition to leading you to fake websites, these links can contain viruses and other malicious spyware that can make your computer – and your transactions – vulnerable to attack.

  • Never conduct business over unsecured wifi.
  • If money has been wired via false wiring instructions, immediately call all banks and financial institutions that could possibly put a stop to the wire.
  • Contact your local police. 

 

Posted by Christopher Terry on July 8th, 2017 11:02 PM

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