Prior to the pandemic, the housing market was booming. Prices were increasing, while inventory was at its lowest level in 40-years. Inventory levels should remain tight because new construction has slowed due to Covid-19. Meanwhile, demand for homeownership has been pent up and those living in apartments are looking for more space and distance. And remember, the biggest driver of home buying is having children. Many expect childbirths to increase over the next year.
The homeownership rate has recently risen to 65%, with the fastest-growing segment being those in their 20’s. With demand rising and supply remaining tight, home values should be well supported into the future.
Let’s take a look at the housing landscape –
There are 81 million households that are owned and 34% of those have no mortgage. So there is plenty of equity to move up. Of the remaining 53 million homes that carry a mortgage, the average loan represents 53% of the value of the home, meaning that there’s lots of equity, even for homeowners with a mortgage.
The current market appears to be a great opportunity to purchase a home at an attractive price for future growth. Contact us to learn more.