Everyone is rightly concerned about the Coronavirus – as well as its impact on the economy and on housing.
But before the Coronavirus took hold, housing was very strong, with both new construction data and existing home sales at 13-year highs.
Believe it or not, we expect the strength to resume in housing when things get better, and I’m quite confident they will get better!
Sure, there might be a slower period as we practice social distancing, but most experts believe that when the economy comes back, it’s going to come back strong.
Did you know affordability is actually improving in the United States? You can find out more on that here…
In addition to that, homes are valued quite fairly; they’re not overpriced…and home appreciation has been steady and sustainable (more on that here…)
Look at this metric: when you take annual rents, the value of a home is about 17 times what annual rents would be. The historical average is 16, so we’re right there.
The peak was 24 times annual rents and we’re nowhere near that level! And if you take a look at replacement costs, home values are 1.59 times the cost to replace the home. The 40-year average is 1.58. It’s nowhere near the peak of roughly 2.
We can expect housing to come back very strong and this may be a great opportunity to buy that home you were looking for and benefit from it well into the future.
Please do reach out to me for more information and to set up your strategy!