Even during the worst health pandemic, the world has seen since 100 years ago, and one of the deepest economic depressions in recent history, the real estate market in the United States has managed to remain active and thriving. Real estate agents went from a huge lull in activity to dealing with multiple bids and even bidding wars (www.aminvali.com).
According to the National Association of Home Builders home builder confidence is the highest it has been since 1998. This is a considerable amount of confidence because of how strong the economy was at the time and the fact that home builder confidence was at a record high in 1998.
What does this mean? This means that the low interest rates, coupled with the majority of the population spending so much of their time working from home and staying at home, has led to an increase in demand for single family homes. People have realized the value of having a home you love and being at your most comfortable and happy is furthered if it’s in your dream home.
The ability to work from home, and the desire to buy something affordable has even led to many wanting to relocate to areas that are not as densely populated. This allows a young family the luxury to buy a bigger and better or to even custom build without an extreme financial strain.
Even if most white-collar workers have not felt the same financial burden as individuals in blue collar industries, the value of moving to a more affordable area, investing in a good home and saving for emergencies has never been more apparently. First time home buyers living in big expensive areas are making a shift towards relocating somewhere less busy and less expensive.
We all knew the disproportionate increase in demand was going to affect prices, especially since there was no big sign of new homes popping up everywhere. Now that home builder confidence is at an all time high, the supply will very slowly try to catch up with the demand. This doesn’t necessarily mean the prices won’t keep going up for a while, because an uptick in construction has led to an increase in lumber prices, which most likely means other construction supplies will also see an increase in prices.
The real estate market helping the economy, and an increase in builder confidence are all good things, so is the increase in housing supply and in many ways the increase in housing prices (for those of us who already own property at least). But if you plan to buy/build a home, the more you wait the more expensive it may be.
Civil Engineer, MBA, Real Estate Agent
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Phone : +1(310)925-3878
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Realtor in Zutila Inc.