Where's the inventory???
The United Sates is in a housing shortage. So it's a great time for homeowners with equity to sell and move up or move on.
Since 2008 the US has built 550-575,00 new residential units nationwide per year.
In 2012 the US projects we'll have built 630,00 new residential units nationwide (this year).
So what?
Can you see why we're in trouble if you consider that from 1988 to 2008 the US was averaging 1.3 million new residential units nationwide per year. (I reported this a bout a year ago in my market report).
16 Million new residential housing units will be needed nationwide, over the next 10 years to keep pace with the population growth, immigration, the need to replace existing aging homes and the demand for second homes.
Now do the math, that's a need for 1.6 million new residential units nationwide per year for the next 10 years and we're in year one of that at only 630K new residential units nationwide.
Added to that, in 100 major US Cities today, it is more expensive to rent a first time buyer home than it is to own it. The housing shortage and the short sale REO markets have played a big role with that and the lowest interest rates in history and the tax deductions that come with home ownership also have contributed to this fact.
LOCAL NEWS: If you own a home and you want to move or upgrade, now's a great time to do so. Multiple offers in San Diego under $600K are common. My average buyer faces 5-12 competing offers. It's a best offer forward market. Under $400K it's a 40% cash buyer market. San Diego is selling on average: 8% higher today than a year ago today.
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