There are lots of headlines, and posts on social media trying to “scare” people about the real estate market.
But remember this, Real Estate has been vote “The Best Investment” EIGHT Years in a row.
The reasons are simple supply and demand. There are more buyers than sellers. In fact, our housing supply is 5.2 million units short of demand. Think about that. It could take ten years for supply to match demand.
How do we know that demand is sustainable? As can be seen in the image from the Pew Research Center, US birth rates in the 1970’s through 2010, have been largely flat. So the US demand for housing should remain strong.
Also bear in mind that rental rates have been increasing as much as 19%/year in many areas. With mortgage interest rates at or below HALF of the historic average for a 30 year fixed rate mortgage (8%,) many Renters may make the decision too pay their own mortgage, and not their Landlord’s mortgage.
“But, is now a good time to sell MY house?”
Before COVID, if you sold your house and purchased another house, assuming only an annual rate of 10% equity accumulation, you would now have over 20% additional equity in the home you bought two years ago.
We may not continue that rate of equity accumulation, but it does provide legitimate evidence that now is a good time to sell AND a good time to buy a home.
Call or text 401-232-4300 for answers to your real estate questions.