REAL ESTATE NEWS

Harvard study considers reasons for low for-sale inventories

Sep 23, 2015, 9:35 AM | Updated: Mar 4, 2016, 5:46 am

Why are inventories of for-sale homes so low in many neighborhoods?

According to the Harvard University Joint Center for Housing Studies, the situation can be blamed on several factors:

  • Owners feeling stuck in their homes because they’re underwater (owing more on their mortgages than their home is currently valued);
  • The still-high volume of homes in the foreclosure process that are being held off the market;
  • The lack of new-home construction;
  • Many single-family units that have turned into rentals

JCHS also highlighted one big culprit not often discussed-demographics.

“The ongoing generational shift among American households has slowed sales in the short run and is likely to continue to dampen sales over the next two decades,” according to the JCHS blog.

Over the last decade, members of Generation X – those now in the 30 and 40 year old age group – have replaced the large baby boom generation, and the Gen X population is much smaller. In fact, among the 35- to 39-year-old age group, the population in 2013 was 9.3 percent smaller than it was a decade ago, with 10.4 percent less households.

As such, the home ownership rate has dropped considerably, particularly among 35- to 44-year-olds. Home ownership rates among Gen Xers – particularly those in their 30s and 40s – are most significantly below 20-year historical rates for other similarly aged adults.

Real Estate News

Kipp Robertson

Home prices around Seattle may be directly linked with transit

Trying to find a home for what passes as a reasonable price in King County is proving to be more and more difficult.

8 years ago

(AP file)...

Tom Kelly

Living longer: How to handle the mortgage

Increased life expectancy brings many unavoidable consequences and concerns as the risk of running out of money in our lifetime has increased dramatically.

8 years ago

tiny house...

Tom Kelly

How to build, buy and finance a ‘tiny’ home

Everybody knows conventional homes are expensive, especially in the Puget Sound region. Are tiny homes a realistic alternative?

8 years ago

No Author

Can you throw good money after bad in a hot market?

What does it mean to throw good money after bad in real estate? What about the idea “get in the door at any cost” now while you can?

8 years ago

home values ridgway...

Tom Kelly

The effect of crime – and celebrity – on home values

Is there ever an uptick in value following a celebrity crime? Suicide? Who typically buys a "stigmatized" home and how does crime affect home values?

8 years ago

seattle housing, rental, home buyers...

Kipp Robertson

Seattle is getting more interest from foreign investors

Figures from a Chinese website shows property buying inquires from foreign investors shot up in August compared to August 2015. Meanwhile, inquiries in Vancouver, B.C. dropped 81 percent in August.

8 years ago

Harvard study considers reasons for low for-sale inventories