This article is coming from https://www.housingwire.com/ by Keisey Ramirez that talks about the housing shortage in today's market. In past blogs over the last few years I mentioned that the inventory of homes will be a issue. I believe we will start seeing more homes on the market and inventory in 2020 with new builds finally being built and the economy moving upward.
"“The worsening inventory crunch through the first three months of the year inflicted even more upward pressure on home prices in a majority of markets,” NAR Chief Economist Lawrence Yun said. “Following the same trend over the last couple of years, a strengthening job market and income gains are not being met by meaningful sales gains because of unrelenting supply and affordability headwinds.”
They should also mention that the market establishes median home prices and homes are really selling well. My business is really seeing a lot of buyers and sellers cashing in on today's market. It is always good news in my opinion when the market is not saturated with home inventory. New homes are being built, but we have started building since the regulations were eased up. A lot of buyers are updating homes and making neighborhoods better.
"“Realtors in areas with strong job markets report that consumer frustration is rising,” Yun said. “Home shoppers are increasingly struggling to find an affordable property to buy, and the prevalence of multiple bids is pushing prices further out of reach.”"
It is no longer a buyers market and that puts pressure on housing prices. Today some buyers fell that the market is still a buyers market and it is not. Wholesale real estate prices are going up. There are still good deals to be found, but it is harder. Buying a home today is different than 2008-2015.
" “Prospective buyers in many markets are realizing that buying a home is becoming more expensive in 2018,” Yun said. “Rapid price gains and the quick hike in mortgage rates are essentially eliminating any meaningful gains buyers may be seeing from the combination of improving wage growth and larger paychecks following this year’s tax cuts.”"
The market always adjust to changes and so will this one. With the national debt in the trillions I do not see interest rates going above 5%-6%, which is a great rate still.
The key is getting a good agent that knows this real estate market and getting the real estate you need in your portfolio and to live in.
I'm Brett and I have created 100's of new homes for my clients Call 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona
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Thank you