After a deep analysis of last month (June 2021) we can definitely say that:
- The labor market is accelerating
- Homes prices are getting higher
- Home buyers confidence hits its highest point since more than a year!
In these terms, It’s possible that the FED will soon mention TAPERING, reducing the Mortgage Backed Securities. The current Real Estate Market could be the best time to lock low-rate fixed mortgage and BUY.
Why this is not a Real Estate Bubble
1) No speculation, Buyers aren’t looking for a quick profit
Even if you can call It a SELLER MARKET, being a home buyer is a good opportunity. If you buy a home now, you are going to see his value rising in the near future. It doesn’t mean that this is only an “investment market”, the home-search is hard simply because the inventory is not keeping up with the high demand. So, if you are good enough to win a “bidding war” for your next home, you will definitely see his value increasing. The fundamentals (supply & demand) are strong. That brings us to point N.2 and N.3.
2) Low inventory
During the last Real Estate bubble, the number of residential properties dropped and has influenced the following years. Now, the market is more than 3 million of houses less than what is needed to meet the current demand. In addition, the pandemic slowed down the constructions over the last 15 months!
3) Millennial Home Buyers
Millions of millennials are entering the Real Estate Residential market now that the number of homes doesn’t satisfy the existing demand. There is a steady increase of millennials that reach the right age to become home owners, and at the same time, millions of “baby boomers” already in the market. Most likely, demand is going to be higher than supply over the next 2 or 3 years.
If your are thinking of selling, our suggestion is to start with a FREE property evaluation. During these “low-inventory” times, you can sell fast, above your expectation. If you are a looking for your next Home, you should choose the right Realtor that represents all you needs during the process: home search, negotiation and closing.