How Long Will this Last?
Recently, I’ve been hearing people say that they think this current real estate market is about to end. But I say… I don’t think so… and this is why.
Even though we have a new administration, with a different agenda, the economy is still pretty strong AND once we open up (getting past COVID) there will be A Lot More people working.
We’re still in a housing shortage. The builders were supplying the demand for the past 10 years and NOW… that demand has increased.
The interest rates are still low, keeping the monthly mortgage payments affordable AND, I don’t think the Federal Reserve will raise them (possibly they may go down again) because raising the rates will slow the growth of the economy at a time that people need to get back to work.
The last recovery was so slow it’s almost as if we skipped a down cycle in the housing market. Ultimately, the housing inventory will tell the tale. As long as the inventory remains tight, the prices are going to continue to rise. I don’t see that happening any time soon.
For home sellers, it is certainly a good time to sell. Prices haven’t been this high since the top of the last market (just about where we are today). And historically, the next cycle surpasses the previous cycle.
There are no crystal balls but I’ve been doing this for over 25 years and have seen a couple of cycles and I study the real estate market every day. When the inventory rises significantly I may change my position. But for now, it’s still a good time to sell and a good time to buy. Hey, you have to live somewhere right? You may as well own your own home and take advantage of the tax laws, appreciation and NOT pay someone else’s mortgage.
If you have any questions about this or any other real estate related topic or if you want to get TOP DOLLAR for your home feel free to call, text, message or email me. (661) 406-1562, (661) 400-0705, firstname.lastname@example.org or find me on facebook @realestatebrokerronhier.
Take care, be safe out there and have a GREAT day!