Many people are scarred from the memories of the great recession. A fluctuation of a handful of basis points is not enough to trigger a home price collapse. We both now and over the past decade, have been the recipients of stupidly cheap mortgages. The annual average for the 30 year fixed rate mortgage this year was about six point five%. That's the lowest annual average in more than 31 years.
#343: The real estate market in 2021 has been bonkers.
That’s the technical term.
From 2012 to 2020, home prices nationwide rose at an annualized average of 5.8 percent per year.
From April 2020 to April 2021, home prices climbed 17.2 percent.
This sudden surge in prices has many homeowners and would-be investors fearful of a crash. The memories of the stark price run-up prior to The Great Recession are all too salient.
What goes up must come down, right?
Not exactly. In this episode, we walk through market fundamentals — discussing housing supply, lumber prices, and the distinction between cheap credit vs easy credit — to illustrate how today’s market is unlike anything we’ve ever seen.
More importantly, we offer tips for everyone —whether you’re a renter looking to get into your starter home, an empty-nester looking to downsize, an owner-occupant who wants to lock in your gains, or a curious aspiring investor who wonders if it’s too late.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode343
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