What is one of the hottest topics in today’s financial market? Inflation. What is one of the safest hedges against inflation? Real estate. It appreciates over time while many other investments like the stock market fluctuate.
> Every year since 2015 the media has predicted a housing bubble, yet home values continue to rise. In October 2015 when they claimed we were in a housing bubble larger than 2006, home values appreciated 5.1%.
> In December 2019 they predicted, “next year will be hard on the housing market, especially in these big cities.” Meanwhile, homes appreciated 11%.
> And in July 2021 the media claimed the “housing boom is over, as new home sales fall”. But home values appreciated 20% that year.
> The Good News While our government targets the fed rate to slow inflation, homes in Birmingham continue to sell well over asking with multiple offers.
An abundance of demand coupled with a lack of supply is driving this real estate market. Consider this, millennials are the largest generation since baby boomers. Millenials are in the market shopping for homes (demand) while many baby boomers opt to age in place (supply).
Without a crystal ball, who can predict what is going to happen next? The fact remains that housing is a solid investment for your long-term wealth. And while circumstances may vary, buying a $350,000 home today could increase your cash
position towards your next home in seven years by $131,159. With information like this ... what are you waiting for?
If you have questions about the real estate market, give me a call today at 205.612.9432 or email me at ccrosby@raypoynor.com. Find me on Instagram @cc_realtor.
