How is Residential Real Estate Doing?
Some people feel that housing affordability is a challenge. Historically, that’s not true. Others feel we are at risk of approaching another real estate bubble. Looking back over the past 16 years, this is also not the case. As a matter of fact, the numbers show the residential real estate market is doing just fine.
The Housing Market Is Finally Starting to Look Healthy – The New York Times
“It has been an excruciatingly long time coming, but the housing sector in the United States is finally getting healthy. Thank millennials and thank homebuilders who are starting to produce more of the starter houses young people demand.”
“Interest rates are so low now that a family can buy the median-priced U.S. home on income of less than $45,000 a year – about $11,000 less than the median household income. And half of America’s houses are cheaper than that.”
Still, some people feel that all this positive talk resembles what was being said in 2004 and 2005. Jonathan Smoke, Chief Economist at realtor.com, explains the difference:
“The havoc during the last cycle was the result of building too many homes and of speculation fueled by loose credit. That’s the exact opposite of what we have today.”
If you have questions or concerns about the real estate market, let’s connect. I’m happy to answer your questions.