Have you been following the world of real estate lately? It’s kind of hard not to when the housing market seems to constantly be in the news with record numbers. You’ve probably heard echoes of “it’s a bad time to buy a house” and “it’s the perfect time to buy a house”, but which is it? Well, let’s go over a few reasons why entering the real estate market right now is a smart move. There are four main discussion points that tie directly to the housing market, and since your time is valuable, we’re going to give a brief explanation of each. Because in today’s world, we need to act fast if we want to reap the rewards that come with being in the right place at the right time. And you can greatly improve your experience with a little help from a virtual assistant. Don’t forget that providing real estate experienced professionals is just one of our strengths.
Interest rates have hit an all-time low, which is obviously great news for buyers. While they are starting to rise again, they are still at a historic low. The fed will continue to raise interest rates over time, but we do believe it will be a slow climb. So act fast! On top of that, the Biden administration appears to be very accommodating towards the housing market. New infrastructure and tax bills are in the process of being passed soon, which will include support for affordable housing construction. In other words; if you like investing for safe profits, there’s no time like the present.
We touched on this before in previous blogs, but the pandemic has really had a strong effect on the housing market. Lots of people who lived in the city before are increasingly motivated to move to the suburbs, in light of recent lockdowns. People cooped up in apartments, with roommates and shared living spaces, don’t want to be stuck like that during another lockdown. The idea of owning your own space, away from all the drama and congestion, has become very attractive to first-time buyers.
The so-called “flight to the south” technically began before the COVID-19 crisis reared its ugly head. People have been gradually fleeing the big cities up north with their bloated cost of living, in favor of more affordable communities down south. This trend has only grown during this ongoing pandemic, as people see less value in paying an arm and a leg for limited space in a more crowded area. For example, Texas and Florida both saw a massive increase in their population during 2021, due to domestic migration.
The millennials, like them or not, are the largest generation in history. Thankfully, they seem to be supporting the move to homeownership as of late. The millennial generation drove the household formation rate from a low of 600,000 in 2010 to 1.5 million today. And it’s expected to continue to grow through, and especially after the pandemic subsides. This generation of professionals is often working high-paying tech jobs, and starting their own businesses in record numbers. Not to mention the increased interest in the stock market as well as making big earnings via new financial tech like crypto and NFTs. They have the money, and they are ready to spend it.
Wrap It Up…
Let’s get one thing straight; this is not a bubble. The bubble that burst back in 06/07 was fueled by speculative buying. As of now, leverage ratios are low, home buying is rational, and construction activity should power on to meet demand. Sure, construction has struggled recently to match the growing demand, but it is catching up. And let’s not forget the growing inclusion of remote working in the professional world. With more people staying home and setting up their own little home office, the need for more space and housing stability is very important. To summarize all of this; if you’re at all interested in the real estate world then now is the time to act on that interest. Remember, fortune favors the bold.
And fortune also favors those who aren’t afraid to ask for a little help when they take on a big new endeavor. So if you need a little support, reach out to us. You can use the link below to request a free one-on-one consultation with one of our experts, who will listen to what you need first and then pitch a plan to help. Here at MyOutDesk we have a large pool of motivated, real estate experienced professionals who want to work for you. From data entry and customer service to marketing and sales and everything in between. Your success is our success, so let’s jump into this housing market and be successful together.
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