National Market Update June 2021 with Kimmy Rolph

Lack of inventory is one of the major reasons the housing market continues to go up. Is this problem going away soon? Are we going to continue to see housing prices go up? Well, there are a few issues we need to address. One is the lack of single family housing units completed by decade. If you look at the graph right here which was provided by Census, you can see how new home housing continues to decline by decade. In fact, new inventory is significantly lower than it has been in the past four decades. The new home builds is almost half of what it was the previous decade, from 2009-2019 new home housing units was 12.6 million and from 2010 to 2019 only 6.5 million homes have been built. Which means we have almost half of the supply of new homes being built, which is one of the causes of pricing going up. When you have a lack of supply of inventory, which is what we are seeing across the nation right now, it causes bidding wars and drives prices up. So this brings up another question with the rise in home prices, is the market going to crash. In fact Google recently reported that the search question “When is the housing market going to crash?” spiked 2,450% (two thousand four hundred fifty percent). If you look at the cost of goods right now, lumber prices have tripled, which means the cost to build a new home is going to go up significantly. With the cost of building a home increasing, it may mean the home builders and developers will be less likely to build new homes, which will continue to hurt our supply and drive prices up. So, is the housing market going to crash in Villanova PA, or Wayne PA, or anywhere on The Main Line? I don’t have a crystal ball but understanding the facts in this video is a way to help understand some of the reasons the market is in the shape it is in now. Remember, Kimmy Rolph sells The Main Line and Local Areas. And I’ll leave you with this quote from Lawrence Yun, Chief Economist of the National Association of Realtors, “This is not a bubble, it’s simply a lack of supply.”