The pressure is real!
Once again, the housing numbers prove that there is no housing bubble, there isn’t a huge drop in housing prices, and that if you have been sitting around believing all the social media click bait to wait for prices to drop, you lost THOUSANDS!
I have talked about this over and over, and it looks like there are still plenty of people out there who seemed to be surprised that home prices continue to rise, and that there continues to be more willing buyers than homes available for sale. The facts are pretty simple, more demand than supply, prices go higher! In 2023, home prices rose almost 6%. On an average sales price of over $400,000, that is more than $20,000! And it doesn’t look like that will slow down any time soon.
The dirty little secret is pretty clear, we build far fewer new housing units each year than the number of new units needed to meet demand. That has been the case for years. The real challenge, the one nobody wants to even talk about, is that we are seeing record numbers of people entering the country and they all must live somewhere! The pressure on housing is real. Like it or not, the crisis of affordable housing will continue to grow because the greatest demand will be for the lowest cost units, and that will continue to drive prices higher.
The pressure is real! It will likely grow worse if interest rates go lower or if people see that the false myth of the housing bubble has not materialized. We are already seeing higher activity levels and increased competition/multiple offers and offers well over asking price in some parts of the country! So, before we hit the spring market, we have to prepare our clients to be in the best possible position and prepared to make the best possible offer to win the deal today, because the pressure on this market is real! Lock in the price today, you can always refinance the rate on the loan should rates move lower down the line!
As always, questions or comments: [email protected]
