Consistently since last year and into this year, we have seen home values go up as inventory continues to be at record lows. Low interest rates, to help stabilize the economy in an uncertain climate caused by the pandemic, spurred refinances that have kept homeowners from putting their homes on the market. Yet, the slowdown in new construction, growth of first-time homebuyers, and those who work from home, wanting larger homes, have ignited the supply and demand chaos in the housing market.
Fear not my friends, the housing market will correct itself in due course. From the last housing crisis in 2008 and what’s happening now, one key important lesson we must not forget is to buy a home you can afford today. It’s easy to get caught up and stretch your purchasing power, but please have a cushion for when the unexpected happens. Stick within your budget and try not to purchase a home for when you get that promotion or new job, because you don’t know when that will happen.
Homeownership is one of the keys to building wealth. While it is a large investment, on average, home values are expected to appreciate over the next several years.
To learn more about the housing industry and what we learned from the past housing mistakes, check out my latest article in MBA NewsLink.
Stanley C. Middleman
Freedom Mortgage Corporation