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This story comes from https://www.axios.com/ and talks about the rising interest rates and low inventory.
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The big picture: Interest rates on home mortgages have
spiked more rapidly than they have in decades, reducing affordability.
Builders can't get adequate supplies to construct houses more quickly.
Yet strong income growth and unstoppable demographic forces are
propelling high demand."
If you are a cash buyer then this is really great news for you because the interest rates rents will increase and so will housing demand. Low inventory and high interest rates will help get the buying of homes more stable. I believe it will still be a sellers market through 2023.
"
It may be a bumpy path as the housing market finds a
new equilibrium. Rising mortgage rates will limit what buyers can bid,
yet it is high prices that incentivize suppliers to ramp up production."
Real Estate is almost like a commodity the less you have the more it is. This could be a perfect storm for investors that pay cash for real estate or pay a 50% down payment.
Cleveland is the perfect place to park money in real estate. The rents are high and housing is very affordable. The areas that we purchase real estate in for our clients have great equity growth also. We help our clients find the best real estate available in today's market.
"
The bottom line: We may end up with less supply and transaction volume, worsening America's housing affordability crisis."
We are still going to have a tight inventory for the next 3-5 years that will still put pressure on home prices and they should rise. The experts say 11% growth in 2022 and 5%-6% price growth in 2023.
When you are paying cash for a home with a 25% equity position you are going to thrive in this real estate market. Watch this blog for real life updates on real estate in Cleveland Ohio.
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Thank you