It has been an unprecedented year, and many people are wondering when things will return to normal. While we’ve been wearing masks and socially distancing, we’ve also been experiencing the fastest growing real estate market seen in decades. Is this the new normal?
Home values in the U.S. have increased by 17% to a median home price of $329,000. We all saw how it turned out in 2008. Problems began when lending companies issued subprime variable loans above home values. This caused interest rates to rise and, in 2007, forced many into foreclosure. Businesses laid off workers to conserve money. Unemployment caused more foreclosures. As foreclosures increased and prices fell, panic ensued, and many raced to sell their homes and pay off their debts.
Since 2008 a few things have changed. The U.S. population has increased by approximately 25 million, and the median age has increased from 36 to 38 meaning there are more of us and more of us are old enough to have jobs. This equates to a shrinking household size, which is to say our kids are all grown up and need a place of their own. Read more →