Without further ado, here it is: We think the Housing Market is doing just fine. And we’re not just blowing smoke either to try and trick you into buying or selling real estate.
Sure, we’ve seen some of the same news reports and articles that you have saying that affordability is an issue or that prices are reaching “bubble” values. Or that sales have finally slowed down and that’s that… Let’s take a quick look at each of these:
Affordability is an issue: According to the The Street in their article Why the U.S. Housing Market is Good – And Getting Even Better, “Interest rates are now so low that a family can buy the median-priced U.S. home on income about $11,000 less than the median household income. And half the houses are cheaper than that.”
Prices are reaching “bubble” values: We turn to our partners over at Keeping Current Matters who put it this way in their article Home Values: DEFINITELY NOT in Bubble Range!!, “Had the bubble and crash (of 2008) not occurred and instead we just had normal annual appreciation over this period, prices would actually be greater than they are today.” KCM illustrates it really well in this graph with data supplied by the National Association of Realtors:
Sales have slowed down: Not really, according to Jonathan Smoke, Chief Economist at Realtor.Com, “Sales typically peak in June or July, but this year might turn out to be an exception. With low mortgage rates, continued evidence of strong demand, and an increasing number of both buyers and sellers just starting to explore, we could have an extended peak.”
Finally, what about Investors? Well, here is one last article worth checking out from Jeff Reeves at Marketwatch, and the title pretty much says it all… This is the Best Time in History to Invest in Real Estate or Why the Market isn’t Headed for Another Bubble. “And given that so many traditional asset classes are facing headwinds, it’s worth taking a serious look at real estate both as a way to find new opportunities and to hedge your bets in a challenging market.”
Bottom Line: With low, low interest rates and room for prices to grow with normal historic appreciation of 3-5%, this is STILL a great market to Buy, Sell or Invest. Give Carol a call to have a no obligation conversation about what makes sense for your particular situation.