Matthew Iovane Discusses the Current State of the Real Estate Market
Anyone who has paid attention to the local news has probably realized that there are a lot of strange things happening in the real estate market. The real estate market has appreciated quickly during the past 12 months, and this has caused a lot of issues for buyers and sellers. According to Matthew Iovane, there are several key forces at work that are wreaking havoc in the real estate market. It is unclear when the market will stabilize, but it is important for people to understand what is going on.
Housing Prices Are Being Driven Up Quickly
The biggest issue people need to understand right now is that housing prices are being driven up quickly. According to Matthew Iovane, this is good news for those looking to sell a home. A lot of houses receive multiple offers the day it hits the market. Therefore, sellers are able to sell their homes for more money. On the other hand, this is making things very difficult for buyers. A lot of buyers are being driven out of the market because they simply cannot compete with people who are making cash offers.
A Lack of New Houses
One of the reasons why housing prices are going up so quickly is that there are not a lot of new homes on the market. A lot of people like to build their own homes; however, it is difficult for them to do so right now. There are a lot of supply chain issues that make it difficult for construction companies to find lumber. In addition, a lot of construction companies are having a hard time finding contractors to build houses. Therefore, there aren’t as many new houses on the market, according to Matthew Iovane.
Low Mortgage Rates
Another reason why housing prices are going up so quickly is that mortgage rates are very low. Matthew Iovane knows that this makes it easier for people to buy a house because they can lock in a lower interest rate. Even though it is good news that people can get a lower interest rate on a home loan, it is also true that this drives more people into the housing market. Because people can afford a larger house right now, there are more people looking. This means that buyers are competing with multiple people making an offer on the same house.
The Market Will Stabilize, But When
A lot of people are wondering if we are living in a real estate bubble. Many people have memories of what happened in 2008. Right now, it is unclear if we are dealing with a real estate bubble, but the market will stabilize eventually. The only question is when this will happen. According to Matthew Iovane, the Federal Reserve may raise interest rates in the near future. This could have an impact on the real estate market. Furthermore, as supply chain issues begin to resolve themselves, more new houses could be built. This could make it easier for people to find a house. It is important for everyone to keep an eye on the real estate market.