5 Reasons to Feel Confident About the Booming Housing Market

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5 Reasons to Feel Confident About the Booming Housing Market

There is still a lot of concern when it comes to the housing market and whether we may be on our way towards another housing bubble and consequent crash. This worry has been felt all across the U.S., including nearby areas such as Mt. Holly, North Carolina. Even with the improving housing market, people are still skeptical.

To help ease the worry, here are 5 points to support the notion that we are not on our way to another housing bubble:

1. Increase in Mortgage Availability

Though homeowners will have an easier time obtaining a mortgage, availability is still nowhere near the levels they reached between 2004 and 2006. While increased mortgage availability is great news, it is not a sign that every homeowner will have the option to buy—some will still find it too difficult to attain financing.

Chief Economist of Realtor.com, Jonathan smoke said “The havoc during the last cycle was the result…of speculation fueled by loose credit. That’s the exact opposite of what we have today.”

2. Housing Affordability Index

This index measures a family’s ability to qualify for a mortgage loan, based on their collective income, the current price of the property and income data. Fortunately, the housing index has found that it is more affordable to purchase a property today than in any other year between 1990 and 2008. The median income of a family is also on the rise, resulting in continued home affordability and demand.

3. Home Prices Within Historic Norms

For the last few years, home prices have increased. The increases are a result of the aftermath of housing crash of 2008; however standard prices are still not back to their 2006 levels. If the bubble and bust hasn’t of happened, home prices today would actually be lower than if they were calculated by appreciation levels between 1987 and 1999.

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4. Housing Demand

Housing demand is certainly growing, and the Urban Land Institute predicts that over 5 million new households will form over the span of the next three years. Regardless of homeownership potentially dropping to 60%, there would still be more than 3 million new homeowners looking for property.

5. Newly-Constructed Homes Increasing

An increase in newly-constructed homes help to relieve the current lack of inventory by doing two things:

  1. First time home buyers will be able to buy a newly-constructed home.
  2. A lot of today’s homeowners will likely move up or downsize to new construction, thus giving them the opportunity to put their current home up for sale.

It is expected that there will be an increase in both new construction homes and in current inventory. If you do have plans to invest in Mt. Holly, check out our long list of properties at Mt. Holly Homes for Sale to start house hunting!

Are you unsure whether buying or renting is your best option? Be sure to read Billionaire Advised that Homeownership is Still the Best Investment to make a more educated decision! Can You Guess Who the Second Largest First-Time Home Buying Group is? Read on to find out!

If you have questions, we want to answer them! Call Showcase Realty today at 704.997.3794 or send us a message here!

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