The Joint Center of Housing Studies (JCHS) at Harvard University recently released their 2017 State of the Nation’s Housing Study. And a recent blog from JCHS revealed some of the more surprising aspects of the study. The first two revelations centered around the housing shortage in both existing homes and new construction.
Regarding Existing Home Inventory:
“For the fourth year in a row, the inventory of homes for sale across the US not only failed to recover, but dropped yet again. At the end of 2016 there were historically low 1.65 million homes for sale nationwide, which at the current sales rate was just 3.6 months of supply – almost half of the 6.0 months level that is considered a balanced market.”
Regarding New Home Inventory:
“Markets nationwide are still feeling the effects of the deep and extended decline in housing construction. Over the past 10 years, just 9 million new housing units were completed and added to the housing stock. This was the lowest 10-year period on records dating back to the 1970s, and far below the 14 and 15 million units averaged over the 1980s and 1990s.”
Bottom Line
A severe housing shortage exists in many towns in Nassau and Suffolk counties. Towns like North Babylon, Islandia, Lake Ronkonkoma, West Sayville, Bethpage, Levittown, Lynbrook, Holbrook, Selden, Deer Park and West Babylon all are experiencing less than 3 months supply of inventory making these towns very strong seller's markets with severe housing shortages. But that's not the case everywhere! There is no housing shortage in Dix Hills, Miller Place, Center Moriches, Port Jefferson, Huntington Bay, Great Neck, Setauket and Bellport Village all with more than 7.5 months of inventory making these towns buyer's markets. Setauket and Bellport Village have more than 10 months of inventory. [caption id="attachment_5492" align="alignnone" width="1024"]
Suffolk County Absorption Rates[/caption]
Click here for absorption rates of various Nassau County and Suffolk County towns as of June 2017. Give me a call or send an email if your town isn't listed and you're hungry to know how it stacks up against the others. The biggest challenge facing us Realtors in today’s market in many towns is getting current homeowners and builders to realize the opportunity they have to maximize profit by selling and/or building NOW!!