Not Spring. Not Summer. May is a transitional month. 18-wheelers filled with fancy cars head north. High season crowds vanish. Honking cars turn silent. Parking lots open up. Service
WHY The Housing Market Is NOT Going To Crash
Dated: April 28 2021
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.
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...
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-....
Latest Blog Posts
Regular readers know I lived in Costa Rica for almost 13 years. My wife and made our first trip in 2003 and we fell in love with its natural beauty. So, we went on a land buying spree. After