Three Things to Know about Today’s Housing Market
Housing inventory is low, buyer demand is high. According to Freddie Mac, we’re about 3 million homes short of meeting current housing demand, and the 1.2 million single family housing starts predicted for next year simply aren’t enough for what the National Association of REALTORS® labels a “supply crisis.” Some of the demand is a result of institutional investing opportunities and some of it is the greater ease of living afforded by an influx of work-from-home jobs. Translation: If you’ve been looking for the right window to sell to get top value for your property, this is it. Buyers want to buy ASAP.
Call it a correction, not a crash. The subprime lending that greatly contributed to the 2008 market crash is not the reason for our current market correction, which is slowing the rate of home price appreciation. If current rates hold steady at or around 6%, expect home price appreciation to slow to 4-6%, says research firm AEI Housing. Before this correction, prices were simply appreciating at unsustainable speeds and now, what we’re experiencing is a more balanced market. It’s like the housing market is an endurance athlete and it just ran a long-distance race. Now, having accomplished that epic milestone, it’s sitting and taking a breather, allowing us all to recuperate from the chaos of 2020 and 2021.
Inflation is no reason to put your real estate goals on pause. Think about it this way: You find the home of your dreams, and the mortgage rate is just below 6%, higher than it was several months ago but still historically low. Now, you make the decision - the home is yours and the rate is locked in as a hedge against future inflation. This concept only applies to home buying; rents are subject to inflation and will continue to rise as inflation does.
REAL ESTATE IS YOUR BEST LONG-TERM INVESTMENT
In a recent 2022 Gallup Poll, survey respondents were asked to give their opinion about the very best long-term investment a person can make. They could choose between bonds, cryptocurrency, savings account/CDs, gold, mutual funds/stocks, and real estate. Do you know what people overwhelmingly picked?
Real estate
Of everyone polled, 45% believe real estate is the best long-term investment option. Stocks/mutual funds received only 18%; gold garnered 15%; savings accounts and CDs got 10%; cryptocurrency was at 8%; and 3% of respondents favored bonds. Even if you add up the percentages from the second and third-most popular options (stocks/mutual funds and gold), you still get less than the amount of people who believe in the long-term viability and potential of real estate as a future wealth-builder.
And real estate deserves this top spot on the 2022 Gallup Poll. While the average American gained $64,000 in equity over the last 12 months by owning a home (thanks for the stats, CoreLogic), homeownership also provides financial advantages beyond the sale of price-appreciated property, like tax benefits and passive income for those renting out their space.
A home is a universal need, and that is exactly what makes it such a solid long-term investment. In the short-term, prices can fluctuate, and it’s critical to partner with an experienced real estate professional who can help you navigate the market to secure the best price possible. In the long-term, a home you bought 10 years ago will always be worth more. It’s why Gallup Poll survey respondents chose “real estate” as the best long-term investment over anything else, and why the smartest decision you can make in your future is to buy a home now.
FIND YOUR PERFECT HOME THIS WEEKEND
Ready to start searching listings and hitting open houses? You may have a picture-perfect home in mind, or you may not know where to even start when it comes to imagining your future place to live. It may help to first consider your basic needs and non-negotiables in a home. Begin by considering where you live now — what are your favorite things about your home, and what do you need to change?
SEARCH OPEN HOUSES
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PEACE OF MIND COVERAGE
Quality coverage and service is top priority at HSA. With over $44 million paid in home warranty claims last year, it pays to have coverage from HSA. For information on how an HSA home warranty can help keep your home up and running, contact your real estate professional or visit
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When you are ready to make your next move, Berkshire Hathaway HomeServices Georgia Properties is one of the largest and most successful real estate organizations in the country. We are the undisputed market leader with 29 offices servicing Metro Atlanta, the Southern Crescent, and the North Georgia Mountains and Lakes. As one of the most respected and admired companies in the world, we are here to serve you.
Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends, and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with Berkshire Hathaway HomeServices Georgia Properties. He has over nineteen years of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at www.LakeSidneyLanierHomes.com or 770-844-8484 or email us at Arthur.Prescott@BHHSGeorgia.com.
