By Duane Duggan
1. Housing starts are less than needed based on population growth. Builder’s are having difficulty starting up again after many trades have left the industry.
2. The national population is increasing because of immigration and births.Also, the echo boomer (kids of the baby boomers) wave is hitting.
3. Boomerang buyers—lost their home to foreclosure, but now back in the market to buy.
4. Dormant sellers-sellers who haven’t heard the market is better and are reluctant to put their home on the market.
5. Values haven’t caught up with the loan amounts to create enough equity to allow a move.
6. People are staying in their homes 9 years on the average instead of the previous average of 5 years.
7. New Household formation creating demand-the 25-year-olds are moving out of Mom and Dad’s basement.
8. People are living longer and staying in their homes longer.
9. Better employment numbers.
10. Low interest rates have allowed more buyers over the last two years to buy homes.
Bonus reason 11….the flood. It took several homes off the market and displaced residents quickly absorbed all available rentals.