Mar 28, 2011

Good News for Home Sellers: You're Competing With Less New Construction Than Ever

daffodil.jpgThe spring real estate market is upon us, with open house signs sprouting up right alongside the daffodils. If you're a seller, this can feel like a mixed blessing -- buyers are showing renewed interest, but you're facing increasing competition from other sellers, in a market that's still pretty slow.

But here's some news to help build your confidence: According to Metrostudy (as reported on by Shawn Tully of Fortune, in an article called "Real estate: It's time to buy again"), there's a major shortage of new construction going on in the United States.

Just a few years ago, we were looking at a glut of new homes, luring some homebuyers away from established neighborhoods into new developments. But no more.

What's more, demand for homes to buy may be poised to go up, as apartment rentals have become expensive and harder to come by. (The huge numbers of people who've been foreclosed upon are a factor here -- they're hardly going to want to, or be able to, rush back into homeownership.)

All of which is to say that, no matter what's for sale down the block from you, your place may still be relatively unique, among a amount of housing stock available to prospective homebuyers. And all it takes is one buyer.