Harrisburg PA Homes for Sale Blog: Housing Shortage on the Horizon in Harrisburg?

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Housing Shortage on the Horizon in Harrisburg?

Housing price declines

Housing Shortage on the Horizon in Harrisburg?  I just found this article on a looming housing shortage. Is it possible that this could be in our future? Agents that have been around a long time can testify to the highs and lows, and the upswings and downturns of the market.

But, a housing shortage? Right now, obviously we have no evidence of a housing shortage. Just look at all the homes for sale right now! But, could this possibly be in our future?

 

Housing Shortage on the Horizon?
Mike Castleman, founder and CEO of Metrostudy, which tracks real-time data of the country's inventory of new homes, says a housing shortage is looming that will soon will create a huge surge in demand for new homes. As such, now is the time to buy, he says.

In the 41 cities Metrostudy covers, 78,000 houses are either vacant and for sale, or under construction - that is less than a quarter of the new homes that fell in that category during the housing boom in 2006 and way below the level of a decade ago.

"If we had anything like normal levels of buying, those houses would sell in 2½ months," says Castleman. "We'd see an incredible shortage. And that's where we're heading."

The historic drop in new construction mixed with the decline in housing prices is laying the foundation for a dramatic recovery in residential real estate, Castleman told CNN. Castleman expects home owners soon will start returning, which will drive up prices in many markets later this year.

While demand remains low for new construction, he expects that to change. He foresees the recovery following a similar path as previous ones: A severe housing shortage will drive a big increase in demand.

"We'll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved," he predicts. "Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house." But they'll want the house so bad that they'll "bid the prices up."

Source: "Real Estate: It's Time to Buy Again," CNN (March 28, 2011)

I'd love to know what you think! Both Agents and Consumers will have opinions on this. If there is really a housing shortage on the horizon in Harrisburg, then we are experiencing first-hand that Now's the Time to Buy! If you are afraid of letting this opportunity slip by, contact me now at 717 514-1793 or Ken@KensHomesales.com

 

Harrisburg PA Real Estate Expert

Ken Huebsch: Your premier real estate agent in the Greater Harrisburg area.  I am a specialist in Harrisburg real estate as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have a combined 40+ years' experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success. 

For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

 

Cell: (717) 514-1793            Email: Ken@KensHomesales.com

 

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Comment balloon 4 commentsKen and Leslye Huebsch • April 18 2011 07:19PM

Comments

I am beginning to feel like a yo-yo  How about you?  Thanks for the post!

Posted by Michael Kitsch (Coldwell Banker) over 7 years ago

The pendulum will swing back to a housing shortage some day.  The only question is when.  As for me I'm ready right now!

Posted by Virginia Gingras (West USA Revelation) over 7 years ago

Ken--Interesting facts and nice presentation by the way.  It seems as if I have been telling my clients for months that come March and April there will be a lot more inventory from which to choose.  So far, that really is not the case.  My own listing numbers are slightly down too---but buyers seem to be picking up.  Only time will tell!

Posted by Pat Haddad, ABR, CRS, ePRO, GRI, Carmel, Fishers, Westfield IN Real Estate Expert (Keller Williams Indianapolis Metro NE) over 7 years ago

Cheryl, Virginia, and Pat - In our area, we have a lot of inventory. I hope that pendulum swings quickly! I would wish this, mostly, for all my Sellers who have stuck through this like troopers. Let's hope he is right!

Posted by Ken and Leslye Huebsch, Realtors - Harrisburg Homes for Sale 717.514.1793 (3x Individual Agent of the Year, Luxury Homes, First-Time Buyers, Residential Resales, New Construction) over 7 years ago

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