Despite the number of column inches that have been dedicated to the growing issue of foreclosed homes in the US, some senior economists are actually predicting that there will be a serious shortage of available housing in the near future.
We've all heard the horror stories about the 3 million foreclosures, plummeting house values, withering rents and scores of properties for sale with few buyers willing, or able, to invest. So, how on earth can there be a shortage? Well, apparently there just aren't enough new houses being built. Why, one must ask, do we need to build houses, if no-one's buying them? And if there are swathes of empty properties the length and breadth of the country, surely we don't need to add to that bleak inventory?
The answer, apparently, lies in projected population growth. It is an inescapable fact, that the expanding population will need to be housed and, according to some analysts, the current volume of properties will simply not meet their needs.
Meanwhile, other financial experts are claiming that simply building new houses will not solve the problem of housing people, especially if those people cannot afford to buy them. If employment continues to decline in many areas, then more people will continue to rent and combine resources, in multi-occupied homes. And if Americans adapt to a more fiscally aware lifestyle, then who's to say that they will all require the kind of housing that many aspire to today? Will couples be able to afford to pay a mortgage for a home with 4 bedrooms and 5 bathrooms? Perhaps houses will be home to three generations of family, as is popular in other parts of the world? Fewer jobs, equal fewer people with a guaranteed income, which will result in fewer granted loans, and ultimately fewer house sales.
It seems that the focus, in the last few decades, has been on building large, single-family houses, or expensive, high specification condos. And it is these properties that are currently struggling to find buyers, in some areas. Meanwhile, in many parts of the country, the smaller, lower-priced houses and lofts are actively moving, thanks in part to low interest rates and government incentives. The result of this, is that many larger properties, in once desirable subdivisions, are stagnating, despite dropping prices, while the lower-end, first-time buyer home market is, as demand increases, actually starting to see rising values.
Of course, the property landscape seems to change weekly, and while positive stories continue to emerge from certain areas of the market, the picture often isn't quite so rosy elsewhere. Undeniably, the housing market is going through a period of significant change, and will continue to ride the storm, one way or another. There will be more glints of hope on the horizon, and there will be more tales of woe to come. Each part of the country will have its own particular story, its winners and its losers.
If you are considering selling, down-sizing, moving into a bigger property or entering the market for the first time, make sure that you avail yourself of the best possible advice. Talk to local real estate agents, and finance experts, and make sure that you are well-informed and familiar with the situation in your own area. You never know, now might be just the right time to make a move.
Visit MinneapolisLoftsAndCondos.com for a range of properties and information about homes in Calhoun-Isles. Our tailored market search can find you the greatest Minneapolis property listings.
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