The freddy mack report that projected a reversion to the mean, five point three % growth in home prices in the year 20 22. We have a labor shortage across the nation right now. There are more job openings than there are people to fill them. When wages grow, people spend. And when people spend, home values go up. The third factor is limited housing supply. It's critical to understand how limited housing supply was exasperated by the pandemic and drove massive sky rocketing in home prices during the peak pandemic year.
#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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