@johncnatale In one way, they have. They’ve taken the fluff out of many real estate markets. You’re not seeing $100,000 over asking bids, fifty-person lines for open houses and all the craziness that became common from 2020 to early 2022. It’s been over seven months of higher interest rates above 5%, so the market has largely reacted from it already. In that regard, we’d have to consider the Fed successful in its actions so far for the real estate market. The issue I see though is still the severe lack of inventory. Since so many are locked into low interest rates, there’s little motivation to move at higher rates. Here at the Jersey Shore, construction in our area for anything that isn’t a multi-million dollar property doesn’t exist. Construction hasn’t kept with the demand in many areas and is severely needed to balance out the market. The federal government has the ability to streamline construction, in a safe and responsible manner, and the supply chain that’s held it back for two years. Until something is done about inventory, the housing market will continue to struggle. Many will be left without a home of their own and typically become renters, rather than homeowners. Home ownership is still the greatest chance to generational wealth, and it’s important for the great majority of the American public to have a chance at it. If you need to stay up to date with what’s happening in the real estate industry, especially here at the Jersey Shore, don’t hesitate to contact a Realtor at Natale today.
In one way, they have. They’ve taken the fluff out of many real estate markets. You’re not seeing $100,000 over asking bids, fifty-person lines for open houses and all the craziness that became common from 2020 to early 2022. It’s been over seven months of higher interest rates above 5%, so the market has largely reacted from it already. In that regard, we’d have to consider the Fed successful in its actions so far for the real estate market.
The issue I see though is still the severe lack of inventory. Since so many are locked into low interest rates, there’s little motivation to move at higher rates. Here at the Jersey Shore, construction in our area for anything that isn’t a multi-million dollar property doesn’t exist. Construction hasn’t kept with the demand in many areas and is severely needed to balance out the market. The federal government has the ability to streamline construction, in a safe and responsible manner, and the supply chain that’s held it back for two years.
Until something is done about inventory, the housing market will continue to struggle. Many will be left without a home of their own and typically become renters, rather than homeowners. Home ownership is still the greatest chance to generational wealth, and it’s important for the great majority of the American public to have a chance at it.
If you need to stay up to date with what’s happening in the real estate industry, especially here at the Jersey Shore, don’t hesitate to contact a Realtor at Natale today.