Is the HOUSING MARKET CRASHING in 2022?
Is the housing market going to crash in 2022? Probably not.
Rather it is going to keep on improving. Here are top five reasons why there will be no housing crash for next couple of years and the market is going to keep on improving.
Reason number one, the cash buyers!! Even the cash buyers are offering over the asking price. Recently one of our listings was in the high 500's. Zillow offered $5,000 over the asking price. Zillow offered cash. And a company like Zillow, they're so big they offered cash $5000 over. Think about that. Do you think if Zillow or Redfin or open doors the companies, ibuyers, they are paying top of the market value. Do you think this market is going anywhere? Probably not. This market will definitely keep on improving, because of this. There are multiple offers still on each property.
Buyers are offering high and high prices, so this flow is going to keep on going. This is one of the top reasons this market is going to keep on improving.
And reason number two is definitely the interest rate. So what happened, the low interest rate gives the advantage of affordability for the buyer. Now think about it. If you have to buy a home for $500,000 with a high interest and the same home, you have to buy a $600,000 with the lower interest. It really doesn't matter to you how much is the price?
That's not the primary reason you're going to buy the home. A home buyer looks for the monthly payment.
So the $600,000 home with a low interest rate, if the monthly payment rent is affordable. You will buy that home. Because both the homes or both the prices you will pay off the mortgage in 30 years. So, it really doesn't matter how much you're paying for the house, it's going to get paid off in 30 years. So what a home buyer is looking for is the monthly payment. If the monthly payment is affordable, they will buy the home.
So this low interest is so low by the time it goes up, it's going to take time. It just not going to go 2 or 3% up in a couple of days or so. It's going to take time to go that high. So, this market is not going down right now. It's going to keep on improving.
And reason number three is the rental market, especially here in Southeast Florida.
The rent prices are so high, the families have to leave somewhere now they have a choice. They want to pay that at a high rent price or just buy something because as you know, the rent will never go down, it will keep on going up or it will not stay the same.
The rent for every year is going to go up. But when you buy a home with a 30-year mortgage fixed rate, it stays the same for 30 years.
So that's driving the families to buy a home rather than renting. 88% of the Americans say they would rather buy a home than rent.
So it's clear this market is not going down, is going to keep on going up. Because of this reason, as the rental market keeps on going up and is going to drive the buyer to buy a home rather than keep renting
And reason number four, this market is going to keep on going up is the low inventory. The low supply of housing in Southeast Florida and most of the major areas. There is no more land left.
I see the new constructions, most of the new construction they're building are the townhomes. There's not much land left to build single family homes. So the price is going to go up more because of the demand. The more people are here, there's a lot of job opportunities, business opportunities in South Florida, but there's not enough land to build homes, but definitely this low supply of inventory is going to keep on improving this real estate market and the prices will keep on going up. And reason number five, this real estate, the housing market is going to keep on going up or keep on improving.
Is the migration to South Florida. Cities like New York or a state like New Jersey or even California, a lot of places. the housing prices are way more than SouthEast Florida, South Florida. The weather, we have tropical weather, a lot of families, they're retiring here.
Now.... the prices compared to the other cities or other States in South Florida are very affordable. And then the migration flow is towards here in southeast Florida, and that is making these prices going up because compared to price in, for example, New York, the same exact property and the exact kind of neighborhood is way cheaper. So those buyers, they don't mind paying a little high price to get the right property. So the migration of families from other States where the prices are higher than South Florida is actually driving prices here. The home prices here are going up more.
So these are the five reasons why in 2022, the housing market is not crashing, it is continuing to go up, keep on improving.
Hopefully, this information will help you to make your decision right now to buy your home or buy your dream home. If you are living in a home, you want to upgrade or downgrade, buy another home, sell this home. This is the time.