Why There Has Been A Huge Shortage Of Massachusetts Homes For Sale
Copyright (c) 2013 Laura Stearns
The real estate industry in Massachusetts is slowly improving, but the latest drawback is lack of inventory. The number of Massachusetts homes for sale hit a record low this year alone. The decrease is also affecting all the numerous segments of the market. For example, short sale and even foreclosure listings have been affected greatly; they are all down. Speak to any real estate agent in Massachusetts and they will tell you there are not enough Massachusetts homes for sale. Subsequently, home and house builders are falling over themselves to develop more and more homes to combat this looming disaster. This then begs the question, why has there been a shortage of Massachusetts homes for sale? Quite a number of people have numerous reasons as to why there is a shortage of Massachusetts homes for sale. Among some of the reasons why there is a shortage are highlighted below. Agents Are Not Doing Enough Marketing First, real estate agents in this area are not doing enough to actually market for listings. Additionally, the recession has brought about low sales. This has hindered the agents from marketing and attracting listings. Additionally, the home sellers are quite hesitant to sell. Builders Are Not Doing Enough To Build Enough Houses Another prime reason why there has been a shortage of Massachusetts homes for sale is because of the land prices. Following an increase in land prices, quite a number of developers have been discouraged from buying land and developing it, resulting in the number of homes available for sale hitting a record low. Additionally, there has been low level of construction of new homes. This has led to great demand for houses forcing quite a number of people living in Massachusetts to actually scramble for the few that are available. This has no doubt led to a significant shortage of Massachusetts homes for sale. The demand for a place to live in is quite high in Massachusetts, and indeed other parts of the country. Not Enough Equity To Trade Up Homes Many a times, quite a number of people and home owners rely largely on the equity from their current homes to make a down payment on their next home. Another reason why there has been a major shortage of homes for sale is that many people still have a challenge when it comes to accessing credit. Many Investors Are Gradually Snatching Up Properties Many investors are holding up quite a number of houses and flipping them for profit. This trend keeps extremely few homes on the market. Banks are also slowing down foreclosures. Banks have new rules for the foreclosure process. This has forced them to move slowly in foreclosing on homes. This has certainly contributed in the current shortage of homes for sale in Massachusetts. Immigration into Massachusetts Massachusetts is currently experiencing a massive immigration of people to this area. This people certainly need a place to live. Consequently, this trend has led to the occupation of the few new available houses.
About the Author
Laura Stearns, a Realtor with Keller Williams Realty Merrimack Valley, Massachusetts, has a passion for making sure that both potential home buyers and sellers are educated in this roller-coaster real estate market. With a decade's worth of accounting and investment property experience, Laura knows that well-informed consumers make more confident choices. For more expert advice, please visit Laura at http://MerrimackValleyProperty.com
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