As many people who are interested in buying a house have noticed, there are not many homes being placed on the market. There are a few reasons why housing inventory is at an all-time low, which include increasing mortgage rates and aging in place.
Current homeowners are afraid to trade in their low mortgage rates for the higher mortgage rates that come along with purchasing a new home. On average, homeowners are living in their homes for about 11.3 years, which is a massive increase since the average of 5 years in 2017. People are also less likely to downsize, as many homeowners turn former bedrooms into home offices or other useful spaces (especially during the COVID epidemic).
In addition to the avoidance of high mortgages, seniors who purchased homes many years ago have been aging in place, the trend of elderly people living in the same home throughout their golden years. This trend is indicative of longer life spans and seniors accessing healthcare that we have never been able to see in the past.
These trends will continue to shape the housing market in the future, and housing inventory is not likely to increase in the upcoming years.
Contact Suzanne Dyer at 310-528-7480
Berkshire Hathaway HomeServices California Properties
CA DRE license #01054310