Freddie Mac released data Thursday looking at the state of housing supply in the U.S. While the most severe supply problems show up along the coasts, the report finds that those shortages are moving inward.
The spring homebuying season in Minnesota has become cutthroat in recent years.
“When we’re putting a house on the market in the springtime and throughout the summer, it’s selling in a day, if not hours — and with multiple offers,” said Richelle Taylor, a broker based near Minneapolis.
The Freddie Mac report says there aren’t enough houses to meet demand in 29 states, including Colorado, Texas, Montana and Idaho. Freddie Mac chief economist Sam Khater said people have been moving out of expensive states like California and Washington, and that’s caused a ripple effect.
“Coastal supply shortages are driving demand much higher than it would be into these other areas, and causing shortages there,” Khater said.
Even though housing is cheaper in the middle of the country, the short supply is driving prices up. Low interest rates are boosting demand, too.
Taylor said while the average Minnesotan can afford a home up of to $225,000, “there just are not that many houses for sale at that price point.”
The report says the shortage will only get worse as younger buyers enter the housing market.
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