By With interest rates rising, inventory low and markets are having above average increases in pricing should home owners sell now! This nation seems to be in a permanent bubble which will have to explode at some point. Inflation is at an all time high. Our goods and services are costing more each day for all Americans.
Gas prices 8 months ago in Las Vegas were just hoovering over $ 2.00 a gallon, today we are over $3.50. Wood prices are through the roof with plywood and lumber studs increases being double what they were a year ago. The list is long as our grocery prices increase almost daily . Which bring us to the housing market. Home values have sky rocketed.
In Las Vegas homes bought 5 years ago for $230,000. are selling upwards of $400.000.. Nationally the average price increases are 15% over the same period as last year. According to an article in the WSJ the medium price of homes rose to $363.000 in June of this year. Due to shortage of homes for sale, interest rates for qualified buyers 2.5% in addition the lumber to build has priced most buyers out of new home expenditures.
Will the bubble crash any time soon. Most real estate experts from Forbes to Fortune and others around this country say don’t worry the market will stay strong. They do not foresee an eminent crash in 2022. Few say there will be a loss in value as inventory still is low as buyers try to out bid each other to get the property they desire.
Historically Real Estate has a perpetual cycle where the market crashes usually every 13 years. Losing up to 4% in GDP with the crash as well as taking up to 3 years to recover. The last crash was in full action 2008. Houses were abandoned, banks were foreclosing, families were bankrupt as the prices of the homes fell in some places 35-40%.
.Nationally the average price increases are 15% over the same period as last year. “
With 30 years of knowledge in the Real Estate industry we believe there will be a crash in the upcoming months. The time is ripe, inflation at an all time high with no end in sight. Jobs are again being outsourced to foreign nations. Unemployment rate from BLS shows we are still at 5.2% with 8.4 million still out of work. Pre pandemic there were only 5.7 million on the unemployment rolls being 3.5% of the eligible work force.
There will be a crash in the near future. Be it 6 months, 8 months or possibly a year it will happen. the one sure thing in real estate is prices always drop as history shows. The prices may not drop like the 2008 crash but there will be a crash. Should you sell? The down side is once you sell for the high profit from the equity where do you go to buy. Do you buy a smaller home or a fixer upper? Should you relocate to a tax friendly state and build a new home with pre-construction prices. Not an easy choice with the market the way it is.
