Economic Forecast is Mostly Strong
As you can see in the chart below GDP and Job creation are rising while unemployment remains at an all time low.
Homeownership Rate is Down
The percentage of the population that owns a home is way below the average. It hasn’t made a huge recovery after the recession due to lack of housing.
Debt is increasing, preventing loan approval for many
Consumer debt is rising quickly since the recession. The most significant debt is student loan debt which now averages more than $41,000. This debt is blocking many first time home buyers from qualifying to buy a home. Coupled with stagnant and unaffordable new construction there is a widening affordability gap.
On the surface everything looks great in the real estate industry, but we are reaching our breaking pint for housing availability and affordability. At some point in the near future, people will just stop buying. Prices and demand will waiver so the US government will probably have to start subsidizing affordable housing before we just run out of places to live. It is still a great time to buy and sell real estate, but we still don;t know hat the future holds.
Chris Bober is an Associate Broker and leader of Team Bober, a group of REALTORS® at Nebraska Realty in Omaha, NE offering a wide range of real estate services including home and new construction sales, land and farm sales, and auctioneering services. For more information please call Chris at (402) 312-5076 or email him at info@ChrisBober.com. TeamBober.com