There is a lot of talk about the housing market these days. Are we in a housing bubble? Some say that it’s inevitable, that the market will crash and homeowners will lose everything. Others maintain that the market is going in a good direction. So what’s the truth? Let’s take a look at supply and demand in the housing market to find out.
The supply of new construction homes is not keeping up with the demand. This is because the DFW area has been growing so rapidly. The population is increasing, but the number of new homes being built is not keeping up. This lack of inventory is driving prices up.
On the other hand, we have an overdemand of buyers because the interest rates were artificially lowered during the pandemic. This made it easier for people to buy homes, but now that interest rates are rising again, we will see a decrease in buyers. However, this will not crash the market. In fact, this is exactly what we want to see happen. Rising interest rates will slow down the market by decreasing buyers.
In conclusion, the housing market is headed in a healthy direction. We are not in a housing bubble, the market isn’t going to crash but it will become more balanced. At the end of the day, isn’t that what we all want? So if you’re thinking about buying a home, now is a good time to do it!
If you have any questions or would like more information, you can reach out to us anytime through our Contact Us form or visit our YouTube channel, Home in Dallas Texas, for plenty of videos on the DFW area!