By now just about every would-be buyer out there knows there simply aren’t enough homes for sale these days to appease the hordes of competition. But despite the shortages, rising prices, and bidding wars, more homes are expected to be sold this year than in more than a decade.
In 2017, the number of sales of existing homes is expected to rise about 3.5%, according to the midyear forecast from the National Association of Realtors. New homes are typically more expensive than existing homes, as builders must contend with shortages of land and labor, plus rising costs of materials and difficulty obtaining financing.
“As a result, buyers are compromising on the number of rooms, length of commute, or other home qualities,” says Senior Economist Joseph Kirchner of realtor.com. Buyers are coping by putting ever-higher percentages of their incomes toward homeownership – even when it means eating at home every night and doing without new clothes or annual beach vacations.
Others are purchasing homes farther from the city center where they work, or choosing smaller homes or purchasing residences in need of some work.