Tuesday, July 6, 2021 / by Breanna Thornton
In today’s blog post we will talk all about the things you need to know during the market in July. The real estate industry is just as busy as ever, and having the inside scoop on the market will give you a leg up if you are wanting to buy or sell real estate soon.
A lot of people are having conversations about whether or not the real estate market is like a bubble right now. A housing bubble is a period where home prices will steadily increase until the demand cannot meet the supply price, and the “pop” happens when the prices come down in a sharp decline. While this event is not good for real estate, expert opinions show that this will not be the case moving forward in the month and throughout the year.
“The housing market is in line with fundamentals as interest rates are attractive and incomes are high due to fiscal stimulus, making debt servicing relatively affordable and allowing buyers to qualify for larger mortgages. Underwriting standards are still strong, so there is little risk of a bubble developing.” - Nathaniel Karp, Chief Economist at BBVA
Renting vs. Buying
We have talked several times about the benefits of homeownership and what it does for you. The biggest advantage is the financial investment, considering the money you pay helps build your own equity and gives you more purchasing power. Along with that, low mortgage rates are still around and making it more affordable for you to buy a house.
Renters face another battle. The monthly rent price is starting to rise more and more because of the industry, so it is not as affordable long term. However, renting can be a good option if you are looking for a short term place to live while searching for a new home. If you are unsure what the best option is for you and your financial situation, ask one of our agents or talk to a lender!
So...what about Inventory?
July still looks to be somewhat challenging for those wanting to buy a house. Buyers are still flooding the market. However, listings are beginning to increase. As people move, jobs stabilize, and the global pandemic starts to come under control, balance is starting to come back into the market. While we are still not quite to where we were before the pandemic, we can be optimistic about where things are headed with the number of listings in the market.
A Look Ahead
For the rest of 2021, experts still expect there to be low interest rates and price appreciation on homes. While these conditions are still favorable and affordable for buyers, the only guarantee is to start the process now! Reach out to one of our agents if you are curious about what your home could be worth or if now is the right time for you to make a move. Happy Tuesday!
Header image from West Line Village