Abnormal to Normal: Evolution of Housing Market (Fragile to Steady)

The housing market has been the one piece of the American economy that has been on the steady incline over the past few years. Everyone remembers the housing bubble in 2008, the housing crash was caused by everyone getting a loan and prices of homes skyrocketing.

The crash was a perfect storm and since that crash, the housing market has taken some time to rebound but is now quite strong and all indications are that it will continue to be strong for years to come.

The Evolution of the US housing market

The Evolution of the US Housing Market has been on the uptick for quite some time and is now stabilizing some.

The housing market is best when it is boring and in fact people are not investing in homes for purely speculative reasons, the bottom line is if folks are looking to buy a home, they should plan to be in that home for more than 3 years if they have a hope of making a profit, this is obviously dependent on market (NYC – 5 years, Detroit – only 6 months)

The reason for the crash in 2008 was that approximately 7 million folks bought homes that shouldn’t have and that same number of folks were foreclosed on which put the housing market in a tail spin.

So now, those folks are renting and we have a high demand for rentals based on the supply and the housing market is looking more appealing as interest rates are still historically low and folks still have that dream to own their own home.

The housing market is now stabilizing and is a great time to buy a home with interest rates low, house prices steadying and banks’ lending again. It is a great time to buy so dip your toe into the housing market and find the right property for your family – you’ll be glad you did.

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