Many people have been wondering about where the housing market is heading. With so many ups and downs, it can be hard to track and keep up with everything that is going on and things do not seem to be stabilizing all that quickly. However, Christoffer and Aleyna Groves are able to help those who are looking for help in understanding the market.
“The market has been going crazy for the last two years, as a result of the COVID-19 shut down and the supply chain slowing down. We saw an increase in people spending on their homes, thinking, “If we’re going to be stuck at home, we should upgrade it more to enjoy it.” This renewed desire to modify homes in turn increased demand for construction and skilled labor. The issue then was that the demand wasn’t being met, either because of sickness or because people were taking government assistance instead of working after the initial shutdown,” Christoffer and Aleyna explain.
Christoffer and Aleyna are able to understand the housing market at an intimate level because of the business they run, Groves Capital, which helps buyers find the best mortgage options for them. The pair explain that the market has been so volatile as it reacts to the world around it, particularly the pandemic and how that has affected supply chains.
“The market values started to climb fast due to the economic environment and the supply chain delay. House prices increased 20-30 percent in 16-24 months and buyers now wanted to get a property before they lost their chance and found themselves priced out of the market. The value of properties increased so quickly that it sent buyers into a frenzy in much the same way Americans did with toilet paper early in the pandemic: buy it before you can’t get any. The average buyers have been paying over a premium to purchase properties, and they are bidding significantly over asking prices with little to no contingencies just to get a home. With the market changing, the interest rates were being kept low by the Fed buying down the bonds, which allowed those in distress to lower their house payments and those who wanted to buy at a low rate to capitalize on the investment in the market,” Christoffer and Aleyna state.
At the same time, Christoffer and Aleyna explain, people still feel like there is an impending crash, so they wait to buy property. However, the two of them are trying to help people shake this misconception. As Christoffer details:
“When I hear that, I always ask, “why would we have a crash?” This isn’t what happened in 2008, which was a result of bad lending practices. The lending has been more regulated than ever, and the supply chain is still slowed down, which likely means it will take anywhere from two to five years in the future to get us back on track.”
Christoffer and Aleyna go even further than that saying they do not foresee a crash in years to come! They want prospective buyers to know that if they have been waiting on the sidelines to buy, now is the time! To find out more about Christoffer and Aleyna, check out their website here.
