Real Estate Bubble 2021 – When Will home prices go down?
Real Estate Bubble 2021 When Will home prices go down Will inventory go up soon? When will home prices go down are the big questions in today’s real estate market. Will we experience another housing bubble like 2008? We know it feels like the wild, wild west out there if we’re trying to buy a home. Hi, I’m Paula Quinn with RE/MAX Central.
Ivy Zelman from The Z Report says, “This month, our broker contacts report a continuation of robust demand and intense competition from buyers to win houses with bidding wars, all cash offers, waived contingencies, and rent-free leasebacks increasingly common in many markets.”
So much is happening across the country in real estate right now, but the biggest story certainly is the continuing lack of available inventory causing this market. Around here, we like to call it a, “robust demand, intense competition.” We’re seeing a lot of bidding wars on some of those homes, and a reason for this is that we do not have the sellers that we need for today’s market. It’s really that simple. And this is causing a buyer fatigue for those that keep getting out bid and usually by those all cash offers, or in this market, conventional.
Soaring prices of lumber has slow construction as well down across the nation. You can’t turn on the TV without hearing about rising cost of lumber in today’s market. Robert Dietz of the National Association of Home Builders says, “The decline in single family permits “indicates that builders are slowing construction activity “as costs rise. “While housing starts were certainly strong “at the beginning of the year “due to the home builder constructing homes “that were sold pre-construction, “now higher costs and limited availability “of building materials have paused some projects.” This hurt the supply out there, homes for sale, while the demand still remains high.
However, I don’t want this to discourage you from going out and buying a home this summer. Home ownership is a very important concept. It gives you the ability to build equity as well as many other nonfinancial benefits. Gallup’s poll shows that 41% of Americans still believe that real estate is the best long-term investment for the past 11 years. We expect prices to continue to grow, and if you’re thinking about buying, do it now with these lower interest rates. It’s just crazy good.
I’m always here to help and keep you informed. I’m Paula Quinn with RE/MAX Central. So give me a call and I’ll be happy to help you navigate today’s crazy market. And remember, I want you to love where you live.