It was recently announced that in the United States, inflation is at its highest since 1991. To be fair, it is also high in most parts of the world. But in the United States, is housing prices sustainable?.
Depending on who you ask, you will get somewhat different answers:
- Sellers and some homeowners feel a huge amount of security and feel as life is in its blissful era
- Buyers, especially 1st-time buyers are experiencing some type of anxiety and uncertainty.
- Realtors, Real Estate Brokers, and some lenders feel this is not a bubble and don’t see a crash in the future.
Yet some recent events, to some it should be worrisome or perhaps alarming:
- Inflation in the United States is at its highest since 1991
- Zillow one of the major Real Estate platform announced in November 2021 is closing its home-flipping business and laying off 25% of staff.
- A record 4.4 million people quit in September 2021 and no sign of stopping
- Jeff Bezos sells 2 billion dollars of Amazon stocks
- Ellon Musk sells 6.9 billion dollars of Telsa stock
So we have great demand and weak supply, with over 4 million Americans quitting their jobs in 2021. The same 4 million Americans are demanding goods and at the same time, we are witnessing an alarming tight labor market.
Is it possible for the current housing prices to be sustainable considering the most recent reports? How is all this impacting YOU? Please feel free to share your thoughts below.
follow us on Instagram @samwestps