Isn’t that like the boy in the story who said he heard wolves? Real estate experts have warned us about this for years. “the sky is falling!” We’re still waiting on the supposed crash of the housing market. What’s the real story? Why aren’t the home prices falling yet?
Do we miss something? Are we missing something?
The 7 Hidden Factors
Why are we still stuck in the clouds? Why are homes still beyond the reach of many? Seven reasons in ascending order will help you clear the fog.
7. The Baby Boomer Impact
As if a large wave was building up strength away from the shoreline, Baby Boomer retirement The waves are rolling in. This trend is unstoppable. The desire for warmer climes and an abundance of cash are driving a surge in demand for homes. So why would the housing market crash right now in the face of this tidal surge of demand?
6. The holders of low rate mortgages
Have you tried to give something up that was so good? No, right? Most homeowners are in this situation. They are locked into historically low rates of mortgage, so they prefer to keep their home than switch it for something more expensive. This has resulted in a drastic drop in the number houses that are put on the market.
This is a game similar to musical chairs where we all laugh until the music stops, and then someone remains standing. If the chairs represent the houses, then what happens when there are no more?
5. Skyrocketing home prices
The home prices have become inflated to the point that they are forcing many out of the market. Renting is not a smart way to enter the housing market.
4. Uncharted Waters
The housing market waters are murky and treacherous. In order to meet the demand for housing, we must triple our production rate. Does this sound as if a crash is about to happen?
3. Low Supply
The housing market works like a theater where there are more people who want to attend the show, but not enough seats. The curtain is unlikely to be dropped anytime soon due to a severe shortage of inventory and the high demand.
2. Price Variation
Prices can either be increasing or decreasing depending on where you are. The weather is the same way, with vast differences across the nation. Predicting a national crash is a dangerous business because of this disparity.
1. Lessons from History
Two historical events can provide valuable insight. In 1979, despite a terrible economy, home prices soared. We all remember the subprime mortgage crisis of 2008. Banks today are subject to stricter regulations that ensure they only lend money to people who can meet the higher standards. It’s not the same shaky foundation of 2008. This is more stable, more reliable.
You can also read our conclusion.
Is there a crash coming in the housing market? Could be, could not. These seven factors seem to have a fading effect on the probability.
You can still wait for the next installment. “buy one, get one fifty percent off” If you want to get a great deal on a house, it might take a little longer. We should not overlook the gems that are hiding right in front of us.
The key to success is to not only look, but also to You can see the full list of languages below.. What’s going on in your neighborhood? I’m curious.
