Where Does the Real Estate Market Go From Here?

    Where Does the Real Estate Market Go From Here?

    Jun 04, 2021

    This is a great question and one that I get asked continually.

    Although it is hard to read the tea leaves, there are some things we know which can help to predict possible future outcomes in the real estate market.

    We know that:

        Interest Rates are Low

        Demand Will Continue As Long As Rates Remain Low

        Building Is Booming

        Millennials Are Buying Homes

        Baby Boomers Are Retiring and Downsizing

        There IS A Shift in Population to Lower Tax States

        Prices On Goods and Services Are Increasing

    Knowing the afore mentioned things, we can hopefully predict that the market WILL NOT TANK like it did in the Financial Crises of 2008 and the following Great Recession.

    Why you ask?

    Low Interest loans allow easy entry into the house buying market for first time home buyers. This stimulates demand and gobbles up supply. The building industry cannot keep pace at this time and it is unlikely that they will catch up in the next year to 2 years. The steady stream of Millennials buying homes will not cease and baby boomers are one the move…. Literally.

    Prices are being underpinned by the growing threat of inflation and the rising wages further insurer that gains in housing won’t be lost in the near term.

    It is likely that production of building materials catches up with demand soon and that there is a leveling off of price increases but a down cycle in housing appears to be further away if all other things remain the same.

    Another cataclysmic event such as the pandemic and all bets are off.