High demand, low inventory and low interest rates are going to keep the pressure on prices for the foreseeable future. Many people fear a bubble like 2008, but the fundamental factors are different. We actually have a huge housing inventory SHORTAGE, not bubble. If you are wanting or needing to buy, now is the time. If you want to sell you will get a lot of interest and offers. If you don’t need to sell–hang on. Prices will be going highe
Here is the most important data to follow: 2,238 homes on the market in Orange and Seminole County today. 3.171 sold in last 30 days. = Absorption Rate (or “months of inventory”) at 0.70%. This is less than 1 month, when 6 months is considered “normal.”
It is a national problem, too. Nationwide, housing inventory was at a record-low 1.03 million units at the end of February, down 29.5 percent from a year earlier, a record decline, according to the National Association of Realtors. As a result, homes sold in an average of 20 days, a record speed, when 60 days is typical.
Brian Dodd, Broker/Realtor
SOME ECONOMIST DATA: https://www.floridarealtors.org/news-media/news-articles/2021/05/real-estate-market-isnt-bubble-it-just-isnt?utm_campaign=5-10-2021+Florida+Realtors+News&utm_source=iPost&utm_medium=email
SOME MORE VIEWPOINTS: https://www.realtor.com/news/trends/housing-market-crash/?identityID=5f401304708f1900d60b749a&MID=2021_0507_Weekly_NL&RID=24949525402&cid=eml_promo_Marketing_NonPRSL_WeeklyNL_cons.12755382_2021_0507_Weekly_NL-blog1anothercrashfear-blogs_trends
WHAT I ADVISE FOR THE NEAR TERM:
- If you don’t have to sell your house, don’t. Prices are going to continue to go up.
- If you are thinking about buying, hurry up every chance you get. Upward pressure on prices continues, and it is hard to believe the historic low interest rates will always stay this low.
- If you own a home and have to move, I can rent your house while you continue to ride the appreciation escalator up.
- It remains a great time to buy investment property that gives a significant return on investment.