WHY The Housing Market Is NOT Going To Crash

Dated: April 28 2021

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Real Estate Will Remain Strong For Longer Than You Think

The headlines in today business publications are wrong. Now, more than ever, headlines are warning of the coming real estate crash, how foreclosures will bring it down, and how the market is overheated and ready to bust.  

I read it all, and most of it talks about the same repetitious ideas. So, I want to share some data with you that may support my headline and make you ponder this a little further.

 

As you can see in the chart below, in 2007, the US housing market had 3.7 millions homes for sale. Today there are about 1 million and dropping fast. That's a reduction of 2.7 million homes or about 72% less homes for sale.

Housing Inventory

 

Now here's the oomph to this story. 

 

In 2007 there were about 116 million households in the US. Today there are 128 million households. So, today there are 12 million more households... but 2.7 million fewer homes (72% less) to buy than there were 14 years ago. 

 

With demand trouncing supply - it'll take more time than you can imagine for demand and supply to come back to equilibrium. Until that happens, this market remains strong for much longer than you think.

 

I'd love to hear your thoughts on all this. Please let me know...

 

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John Wieland

My real estate passion began almost 30 years ago. It was Orange County, California 1989, when my friend and I began a property management business. We focused on apartment buildings in lower social-....

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