HOUSINGNEWS REPORT
MY TAKE
AGE OF HOUSING STOCKS: 2005 VS 2015 2005 2015
seeing properties attracting multiple offers immediately upon going on the market, adding to the emotional tension of buyers looking to make a home purchase, and further driving price increases across many markets. As homeowners stay in homes longer, we are seeing our national housing inventory increase in average age. This trend is due to the lack of introduction of new home starts to mitigate the pent-up demand of buyers in the housing industry. According to a study conducted by the National Association of Home Builders (see chart on left), “The share of housing stock built 45 years ago or earlier increased significantly from 32 percent in 2005 to 38 percent in 2015. However, the share of new construction built within the past 5 years declined to 3 percent in 2015, compared to 9 percent in 2005.” As our housing inventory across the country ages, so too does the costs of deferred home maintenance, particularly impacting homeowners living on fixed retirement incomes and homeowners getting low returns on fixed savings accounts -- all contributing factors to why homeowners are residing in homes longer. “For first-time home buyers”, said Valerie Neeley of First Team Real Estate in Mission Viejo, California, “down payment resources are limited, due to home buyers’ outstanding student loan debts, as well as employer’s inability to
40%
35%
30%
25%
20%
15%
10%
5%
0%
45 years old or more Source: National Association of Homebuilders 35-45 25-35
15-25
5-15
5 years old or less
As homeowners stay in homes longer, we are seeing our national housing inventory increase in average age. This trend is due to the lack of introduction of new home starts to mitigate the pent-up demand of buyers in the housing industry.”
marks the 65th straight month of year- over-year gains,” as further reflected in recent reports of the National Association of Realtors. The symptoms of higher sales prices across U.S. markets, as well as a low supply of listing inventory limiting sellers’ choices as to what they could purchase if they sold their home, are two critical factors causing homeowners to stay in their homes longer.
in Huntington Beach are leveraging their relationships and brokerage’s market share of available listings in neighborhoods to identify potential home sellers months in advance of those potential sellers placing their homes on the market. Real estate professionals like Campbell are also leveraging their list of a pent-up demand of buyers to often place the home under contract without having to inconvenience sellers with a multitude of showings. Additionally, because of this same pent-up demand, we are
Real Estate professionals such as Lily Campbell of First Team Real Estate
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JULY 2017 | ATTOM DATA SOLUTIONS
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