Tuesday, July 26, 2022 / by Brittany Aspenson
Here’s what you need to know about our local housing market.
Dave Ramsey is a leading industry expert in real estate. If anyone knows what’s happening in our shifting market, it’s him, so I tuned into his latest market address. Today I’ll share his and my thoughts, as a Dave Ramsey Trusted ELP, with you so that you can make the best real estate decision possible.
At the end of the day, real estate is all about supply and demand. Even though inventory is increasing, we still have a housing shortage. For reference, we only have about a quarter of the supply we had back in 2007. Some people are beginning to worry that our market will crash like in 2007, but as long as supply remains this low, there is nothing to worry about.
It doesn’t look like our market will be flooded with inventory anytime soon, either. New construction rates are about half what they were in 2007, and foreclosures are negligible. There was a moratorium on foreclosures during the pandemic, but it has since ended, and the wave of inventory that some predicted never came.
Institutional buyers are here to stay.
Meanwhile, demand remains strong. Our market has five million first-time homebuyers right now from the millennial generation, the largest age group besides baby boomers. We also have investors purchasing homes at historically high rates. They’re making all-cash offers, and they’re likely here to stay.
In general, it’s still a good time to buy or sell a home. If you can afford to buy a home right now, there’s no reason to wait. Rates and home prices won’t fall anytime soon, so the sooner you buy, the less it will cost you.
If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!