Did you know that more wealth is created when you buy at the bottom of a real estate cycle instead of at the top of a cycle?
There is strong evidence that we are now at the bottom of the cycle. It is time to get ready for the next boom.
Why do I feel this way? Households continue to grow. Our population continues to rise and they have housing needs. It is expected that households will increase by 1.25 million annually over the next decade.
Have you heard of the Echo Boomers? They are the off springs of the nation’s largest generation – the baby boomers. This generation is larger then the baby boomer generation to the tune of 6 million more people than the baby boomers.
When supply is low, the demand is high! Over the last few years builders have cut back on building and new homes are at a new low. Over the next few years the demand for new homes is going to be in demand. Based on annual household formations and approximately 300,000 home demolitions, we need between 1.3 – 1.7 million new homes built every year. In 2008, developers only built 892,800 units. The actual number for 2009 have not yet been released, but the estimate appears to be in the 500,000s.
Consider these booming factors – Markets are currently much closer to balance and Existing home sales are improving in the hardest hit states of Nevada, California, Arizona and Florida.
So, do I foresee a housing boom in the future? Yes, I do. I already see more buyers thinking about buying a home. The first-time-home buyers are looking very hard at the extended first-time-home-buyer credit of $8000 and homeowners who have lived in their homes 5 consecutive years out of 8 in their present home are thinking about moving up or downsizing this spring. It’s going to happen, people, and you do not want to not be a part of this wonderful time to buy or sell a home.
Facts taken from Buffini and Company 2010.
Avg. Sales Price: $178,398
Avg. Days on Market: 164
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