Feb 20 2019 37430 1

Dated: 02/20/2019

Views: 3

Why A Normal Market is Just What We Need | Simplifying The Market

Why A Normal Market is Just What We Need

   First Time Home Buyers, For Buyers, For Sellers, Move-Up Buyers,Pricing, Rent vs. Buy

The housing market has been hot for a while now. Homes have been flying off the shelves as fast as they have been listed. Buyers have been competing in bidding wars just to find a home to buy, let alone find their dream home.

This ‘seller’s market’ has driven home prices to new heights. Home price appreciation averaged over 6% across the country.

However, home price growth has recently started to cool down. The latest report from CoreLogic shows that home prices have only risen by 4.7% over the last 12 months.

Many buyers and sellers planning to enter the housing market this year have started to wonder if we are headed towards another housing crash. Ralph McLaughlin, Deputy Chief Economist at CoreLogic, recently stated in an interview,

“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.

The real elephant in the room here is housing supply.”

The simple answer is we are returning to a ‘normal’ market. The inventory of homes for sale more closely matches the demand in the market. The added supply means fewer buyers are outbidding each other. Therefore, prices are experiencing less upward pressure. McLaughlin went on to explain,

“If there are a lot of homes on the market and suddenly no one wants to buy them, you’ll get into a downward spiral of price competition. Right now, however, we’re in the opposite situation, there isn’t an over-abundance of homes on the market.”

As more renters looking for their piece of the American Dream enter the housing market, demand for housing will continue to grow. The Joint Center for Housing Studies at Harvard University estimates over 30 million new households will enter the market from now through 2040.

“There’s the natural life cycle of young people getting older and starting to do adult life things which include … buying a house and that’s a lot of potential inertia that could last indefinitely.”

Bottom Line

Home prices will start to appreciate by historical norms as we continue to head towards a more ‘normal’ market, rather than the over 6% seen over the course of the last couple of years. This is great news! Homeowners looking to sell their home will have buyers, as more buyers will be able to afford them!



You might also enjoy reading...

Blog author image

Team H and L Miami

Team H&L Miami @ Real Estate Empire Group is a fast growing boutique Real Estate firm established in 2001. It began to revolutionize property sales as well as marketing through brokers, agents, and an....

Want to Advertise on this Site?

Latest Blog Posts

Feb 20 2019 37430 1

Real Estate with  TEAM H&L MIAMI @ REAL ESTATE EMPIRE HOME VIDEOS LANGUAGE  FREE BUYING/SELLING GUIDES  Why A Normal Market is

Read More

Feb 18 2019 37430 1

Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!  Monday February 18th, 2019  First Time Home Buyers, For Buyers, Millennials, Move-Up

Read More

Feb 17 2019 37430 1

How to Choose a Color Scheme for Your Homeby Henry & Laly Sanz 02/11/2019Many people find choosing the right color scheme to be the most overwhelming part of their home decoration process.

Read More

Feb 15 2019 37430 1

5 NEGOTIATING TACTICS THAT KILL A SALEThe article below is for real estate professionals to use on their own blog or website copyright free.Negotiation is a subtle art in real estate, but skilled

Read More