The following was published in newspapers across the United States in late October 2016. You can read a local version of the entire story, as published in both the Dallas Morning News or San Jose’s The Mercury News, here, or via the Richmond Times-Dispatch here.
Richard Murdocco, a Long Island, New York-based real estate expert and weekly newspaper columnist, says the housing shortage persists for several reasons.
“The constrained housing market shows that people are holding on to their property in an effort to get maximum value out of their real estate equity,” says Murdocco. “Also, there simply isn’t much quality land to build additional units on, especially in older areas like the Northeastern United States. Since many property owners aren’t selling their homes, there is limited supply, while historically low mortgage rates are driving demand.”
Murdocco also fears that the dearth of inventory will continue for the foreseeable future.
“Both buyers and sellers can expect similar housing market conditions up to the presidential election. Afterward, borrowing rates may become volatile, which may change the lending market for buyers,” says Murdocco. “As for homeowners who aren’t buying or selling, their homes will likely continue to appreciate in value as long as the economy is running well – but they shouldn’t assume values will surpass those found right before the market crashed and 2008.”
