What’s the State of Our Market?
Why it’s very unlikely our real estate market will crash soon.
Are we in a housing bubble? I receive this question from clients all the time, so today I want to answer it.
First, let’s take a look at the number of listings available right now and compare them to this time last year. In 2021, we had 571 active listings in January. This year, we only had 409. In February of 2021, we had 498 active listings. This year, we only have 376. As you can see, our inventory is incredibly low. Supply was considered low in 2021, but homes are even more scarce now.
"Rates remain low for now, but they may increase soon."
Sam Cutter, the chief economist at Freddie Mac, said that geopolitical events have caused investors to move away from stocks and put their money into safer bonds. This has caused mortgage interest rates to remain low in the short term, but if global events stabilize, they will likely increase soon.
As for foreclosures, in 2019, we had 11,960 nationwide in January. In January 2020, it was 96,000, and in January 2021, it was only 4,784. As you can see, foreclosures are very low, which is a good sign for our market.
Our supply is decreasing across the board. In the DMV area, we had 6,664 active homes for sale in February 2021, while in 2022 at the same time, we had 3,493. If supply remains this low, and interest rates don’t rise too quickly, our market should remain hot for the foreseeable future.
If you have any questions about today’s video, please call or email me. I am always willing to help!