5 Reasons There Will Not Be A Housing Crash
Are you waiting for the housing market to crash to buy a home in Southwest Florida? If so waiting could cost you more money in the real estate market. A recession may be on the horizon for 2023 but the housing crisis we saw a decade ago was caused by many different circumstances. Below are five key points as to why I believe the housing market will not crash.
- A normal supply of homes in a regular market is between 5 to 6 months. We are still only around 2.2 months.
- Twice as many job openings as candidates, this will keep unemployment low.
- 90% of homeowners have interest rates under 5% so fewer people will be willing to sell their homes, straining the supply even further.
- People keep saying there are a record amount of homes being built, but builders are so far behind to catch up so it will take ten years for supply to meet demand. This does not account for labor shortages and supply chain constraints. Plus the permitting process is backed up.
- Demand is not pulling back because millennials are in their prime buying years.
Home prices will continue to appreciate moderately until next year. Interest rates will continue to rise to fight inflation. So if you are waiting to buy a home then expect to pay more.
Are you still wondering if the real estate market is going to crash? Worried about buying or selling? With The Naples Agent, you don’t need to be! Contact us to start the process.
He brings his extensive knowledge of the real estate market, excellent communication skills, experience, and passion to Southwest Florida with the aim of helping sellers, buyers, and investors in achieving their dreams and goals. By incorporating modern digital marketing strategies used by fortune 500 companies, his fresh and innovative approach to real estate, coupled with his natural ability to connect with people, has allowed him to achieve success even in the most complex and competitive situations.