Posted by inMotion Group Team on Monday, July 4, 2022 at 1:56 PM By inMotion Group Team / July 4, 2022 Comment
The real estate market is always changing. This can be seen in the way that prices fluctuate, the number of properties are bought and sold, and the amount of new construction being built.
Hi, my name is Jorge Chavez with inMotion Group Properties and right now more than ever, the real estate market is changing and many people are waiting to buy as they expect prices to drop.
I'm here to tell you this is not the case. House prices will continue to go up.
Pricing in real estate works just like any other market where supply and demand determines everything.
For house prices to drop right now, there has to be a greater supply of houses than the demand for houses. More houses have to be available than people looking for them, which is not happening right now.
Compared to 2007, there are 5 million more people in the prime house buying age, the number of housing startups is down 50% and the amount of people looking for a home has increased by 12 million.
What this means is that supply is low right now. and in order for House prices to drop the number of buyers would have to drop dramatically to balance the supply and demand of homes.
A misconception that I often see people bring up is that houses will soon lose value. In 2020 home prices went up 32%, 18% in 2021 and 7% this year.
Because homes are not increasing in price at the same level as 2 years ago, many take this as a sign that homes will soon lose value
This is not the case, as the demand for homes is still very high, so home prices will continue to climb, only now it's at a sustainable rate.
If you're in good financial shape and are looking to buy, don't hesitate. Now is the time. This has been Jorge Chavez with inMotion Group Properties, thank you for watching
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