In Brian Buffini’s “Bold Predictions Mid-Year Update,” he spoke with Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of Realtors, about the current state of the real estate market. Dr. Yun explained that the economy is facing many new circumstances. The dollar value of goods produced is up to 100% and we have 48 states with below low job conditions, which means there are employees who have to complete more work than before due to a lack of workers and there are major job openings. In regards to the # of transactions we will finish the year with, Dr. Yun said it will be around 6.1 million - the highest since 2006. We are seeing some tapping out in home sales activity in recent months and home sales are approaching pre-pandemic sales. We are past the absolute acute shortage from pandemic decline and inventory will continue to improve over the next 6 months. We have more home building activity, but projects are taking longer to complete because of the expense of building materials.
In the current market, home sales are increasing and houses are selling in record time. Reflecting on the 2006 housing bubble, the worry for many Americans and one of the most asked questions on Google is: “Are we in a real estate bubble?” The answer to that question, however, is no. Today, we have about 1.2 million homes for sale. When it declined in 2006, we had 4x as many homes listed for sale and mortgages were shady and risky. We have prices that are rising and more down payments than ever before. The rates are fixed, there’s more equity and a stable dynamic. There’s an army of home buyers who want a second chance opportunity so we are not expecting any persistent price decline.
If you would like to learn more about the real estate market or need help navigating it, call or text Carl Johnson at (919) 880-0904!