Purchase Update

  • 26 May
    Purchase Update
    Posted By: FirstCapus

    Has the strength in the housing market surprised you? The strength boils down to supply and demand. Remember back in 2007 when we faced a housing bubble? Back then, we had 4 million homes up for grabs. Fast forward to now, just a little over 1 million available. Meanwhile, our population has grown by a staggering 34 million people! That means millions more are competing for significantly fewer homes, which pushes home prices higher. While it’s true rising interest rates dampen demand, there are 2 million new households being formed every year and they all need a place to call home. With builders supplying only about 1.4 million new homes, there's a clear imbalance. This imbalance is why home prices increased by 6% in 2022, defying the media headlines calling for a housing crash. And what about 2023? Reputable appreciation reports are forecasting 5 to 10% annual growth in home prices this year! On a $500,000 home, that would mean a gain between $30,000 and $60,000 in home price appreciation alone!

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