Real estate shows no signs of slowing down. Ever since real estate started its rebound from the Great Recession, it has been remarkably consistent in price increases. This coming year it looks to continue the trend of exploding prices. Buying in the US now regularly includes bidding wars and homes selling considerably above asking prices. Even sales of multi-family units are up, as the predicted eviction crisis hasn’t come to pass. It’s a more important time than ever to have legal counsel like a real estate lawyer Orlando-based.
Inventory is a Problem
The biggest problem seems to be inventory that is far too low for the size of the market. With Millenials now in their home-buying years there just aren’t enough homes on the market, and builders can’t seem to catch up. Estimates report that the United States could be short by as much as 3.5 million homes.
Is It a Bubble?
Some investors say the market is a bubble, but the problems that drove the housing crash in 2008 are not present. Subprime lending is primarily non-existent, and families are purchasing from a genuine need to have a home, not speculation. Whereas the market had a surplus supply in 2008, that isn’t the case now.
Home prices are the highest multiple of family income in history, leading one to wonder when the market becomes unsustainable. Right now, it doesn’t show any signs of stopping, though.