A Troubling Shortage of Homes – Chuck Barberini Real Estate

A Troubling Shortage of Homes – Chuck Barberini Real Estate

 Chuck Barberini Real Estate – Contra Costa County Real Estate

We all see it. The rapid increase in home prices, especially in the Bay Area. Interest rates remain low, but so does inventory. Younger buyers and first time buyers continue to have a difficult road to home ownership. To make matters worse rents continue to rise and rental inventory continues to decline making the frenzy around rental properties equal to or greater then multiply offer, over asking price scenarios that continue to take place in the house buying market.

Check out this article by Lawrence Yun that I found in RealtorMag.com that speaks to the current home buying market. Good Luck, Chuck

Inflation may be in check, but the lack of inventory around the country is fueling a sharp rise in housing costs.mar16_NC_economy

There is no inflation, says the federal government. The consumer price index rose by only 0.4 percent in 2015 so there will be no cost-of-living adjustment to Social Security checks this year. However, as most real estate professionals know, housing costs are still climbing. Rents rose at their highest pace in seven years and home prices nationally increased by 6 percent. That would be three times the pace of average wage growth. Housing costs are expected to keep rising in 2016 simply because not enough homes are being built.

From 2009 to today, new construction of single-family homes, condominiums, and apartment units totaled 5.6 million. Over the same period, approximately 1.7 million housing units were deemed uninhabitable or obsolete and were demolished and removed from the housing stock. These two figures result in a net addition of 3.9 million housing units to the country’s stock. Is that adequate in light of 17.3 million additional people living in the country over the same period?

Clearly, the answer is no. Given the average household size of 2.5 persons, a total of 6.9 million new housing units would be needed to accommodate the country’s rising population. The 3.9 million units that were actually created fall far short of the demand—by some 3 million homes.

That explains why rental vacancies are falling and housing inventories are shrinking. Of course, local market conditions vary. States with declining populations, including Connecticut, Illinois, and West Virginia, may have a less pressing need for additional home construction. But those places are exceptions. Housing shortages are the rule in most states and there’s no reason to expect anything to change this year.

There are essentially two major consequences of a persistent housing shortage: a continuing steep rise in housing costs and people needing to double or triple up to afford a home. Young adults may have to find multiple roommates or else live with their parents.

That latter scenario is probably not what most young people dream about, but it’s what the American dream of home ownership could turn into if we don’t spur more housing development in the country soon.

MARCH 2016 | BY LAWRENCE YUN

Mortgage Rates and Market Data

Chuck Barberini – Barberini Robinson Real Estate Group

A Troubling Shortage of Homes – Chuck Barberini Real Estate

Author: Chuck Barberini

Chuck Barberini is a Realtor with over 18 years in the business. He’s a seasoned expert who has the knowledge and ability to navigate the intricacies of the real estate business, so you don’t have to. Over the years, Chuck has worked with several industry leading real estate companies and many knowledgeable and experienced Brokers. With over a decade’s experience in the difficult and complicated world of probate real estate and inherited homes, Chuck has now joined forces with the innovative and rapidly growing EXP Realty as a Broker Associate. Chuck received his real estate license in 2001 after being encouraged by a real estate broker friend. Originally this was a part time venture, but he eventually made the switch to full time as he discovered his enthusiasm for the job as it combined his interests in housing with helping others achieve their dreams of homeownership. Having lived in the San Francisco Bay Area his entire life, Chuck has the area knowledge required to meet the needs of buyers, sellers and investors. When he’s not delivering top notch service to his clients Chuck is a family man, having been married to his wonderful wife, Tracy, for over 30 years. Together they have raised three incredible boys. When it comes to real estate, Chuck is dedicated to serving his clients with honesty and integrity. He always has their best interests in mind and prides himself on his communication and responsiveness. Chuck would love nothing more than to lend his knowledge and experience toward helping clients with their real estate endeavors, but he doesn’t simply expect their business—he only asks for a chance to interview so that he can prove Chuck Barberini Real Estate is a great fit.

2 thoughts on “A Troubling Shortage of Homes – Chuck Barberini Real Estate”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.