Are we headed for a housing crash?

Jun 13, 2022

The media has been throwing around the idea that we’re headed for a housing crash. But is this really the case?

To answer this question, we need to look at the number one law of economics: supply and demand.

Demand is measured by Household Formations, meaning someone is occupying a new property without relinquishing or selling one, like a kid who’s moving out of his parent’s house for the first time. Right now, in the US there are 1.4 million households being formed per year.

Then we have supply, which comes in the form of new construction. Here we look at Housing Completions, or homes ready to move into, which currently equals 1.2 million, after counting for those being replaced.

This means that demand for homes remains greater than available completed inventory or supply, which bodes well for home prices being supported.

What does appreciation look like in your area? Contact a local advisor today.

The pros and cons of buying a fixer-upper vs. move-in ready home

The pros and cons of buying a fixer-upper vs. move-in ready home

Buying a home is one of the most significant investments you'll ever make. While a move-in ready home may seem like the best option, buying a fixer-upper can have its own set of advantages. Here are the pros and cons of buying a fixer-upper versus a move-in-ready...

FHA Announces Lower Mortgage Insurance Premiums

FHA Announces Lower Mortgage Insurance Premiums

HUD released details of a long-anticipated plan to reduce the annual MIP (mortgage insurance premiums) that are currently charged to FHA borrowers by 30 Basis Points (0.3% of the loan balance). HUD Secretary Marcia Fudge made the announcement today at Bowie State...

Refi Applications Surge as Rates Inch Lower

Refi Applications Surge as Rates Inch Lower

Refinancing pushed the volume of mortgage loan applications to one of its biggest week-over-week increases in ten months, during the period that ended February 3. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, jumped...