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The Housing Shortage Is About To Get Worse

We have seen this before in 2006-2016 they built very little medium priced homes. The regulations and the interest rates were not favorable. Most people did not like the economy and were concerned about the future at that time. There were 10+ million homes for sale in 2008-2009 new home builds came to a halt.

You remember the fences around subdivisions? The builders literally just stopped building medium priced homes for a decade. No lending was really available and that destroyed the market at that time.

Fast forward to today and you have people not liking the economic future for their finances. Builders are slowing down on the new builds. Financing is still here, interest rates are up but 5%-6% is still a great rate.

Inflation is another key factor to the new builds which is not mentioned in a lot of the articles I read. It costs more to buy materials and that translates to higher cost to the new home buyer. Translate that into how that will affect the future real estate prices?

That being said, existing home stock that is for sale may be a great purchase. With inventory going up (Still 1/2 of the 2008-2009 inventory) the real estate market will stabilize which will be good for all parties Buyer, Sellers and Investors.

Need Real Estate to live or invest in? Call me (Brett) 216-703-5740 Fathom Realty or Whatsapp me 

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