christian-mackie-SxBca4GcC9k-unsplash.jp

The Wendy Monday

BLOG

7 Reasons We Are Not in a Housing Bubble

Here are 7 reasons the U.S. is not in a housing bubble. ⠀ 1. Low inventory Not enough houses. In March, inventory was down 28% percent from the prior year. ⠀ 2. Lack of supply coming The U.S. is 3.8 million homes short of demand, and low levels of new home construction over the past three years has increased that shortfall. ⠀ 3. Buyer demographics Nearly 5 million Millennials will be turning 30 this year. Millennials will drive the nation’s real estate market for the next decade. ⠀ 4. International demand As the pandemic recedes, international home purchases will pick up. Global buyers- many paying cash - seek vacation homes, primary residences and investment properties in the U.S. ⠀ 5. Low mortgage rates This spring, the Federal Reserve is supporting housing market by keeping rates low for borrowers – a practice it intends to follow until 2022 at least. ⠀ 6. Tight credit Risky credit practices in the early 2000s were a leading cause of the last housing bubble. At that time, risky loans were 40% of mortgages. Currently, those loans are only 2% of the market. ⠀ 7. Greater equity Rising home prices and greater savings rates have increased equity for millions of U.S. owners. 1 in 3 mortgaged homes is “equity-rich,” with loans owing 50% or less of market value.


Questions about the market?

Don’t hesitate to reach out to me : wendy@wendymonday.com

Recent Posts

See All

Out of Town Buyers vs Locals

Buyers moving to Nashville have a budget almost 50% higher than locals looking to buy. In online searches, buyers relocating to Nashville set an average maximum price of of $719,000. Existing resident

If I Sell My House, Will I Be Homeless?

You want to sell when demand is high, but inventory is low. But do you worry about being left without a new place to live? Consider this. In 2021, experts agree on these 3 predictions. Inventory will

Timing the Sale of Your Home

The top 2 things when timing the sale of your home:⠀ 1. Sell when inventory is low & buyer demand in high. 2. Sell when interest rates are low & buyers can afford more. In Nashville that means

sidekix-media--Vfa35ueUCo-unsplash.jpg

Let's Take The Next Step

START YOUR

Home
BUYING
Journey

LET'S GO →

START YOUR

Home
SELLING
Journey

LET'S GO →