The United States is home to roughly 150 million homes. It’s also home to one of the most active real estate markets in the world, and has been for several years. This is also how real estate magnates like Nick Vertucci make their bread and butter.
Home prices in the US have risen dramatically over the past few years. Since 2012, the median home price has risen an astounding 38 percent. But compare that to a traditionally solid benchmark, the median employee wage increase. Over the same period of time, we see that the price of homes have risen a whopping 26 points higher than wages.
The Case-Shiller index, rose by an astounding 36 percent over that same time period. Meaning the price of homes recently put up for sale is hotter than any point in time since the turn of the millennium.
What’s Next For The American Housing Market
Research from Nick Vertucci and other experts in the field indicates that the home prices might start to fall. In order to meet stagnate wages, and continue to find new buyers for homes, the market will have to comply.
But some states’ median home prices will continue to rise at respectable rates. Though most states’ home prices will either stagnate or begin to decline. Something that real estate experts like Nick Vertucci will have foreseen.
Considering Getting Your #RealEstate License? Read This >> https://t.co/H8WLUfo9ij #realestateagent #realtor #REI #investing
— Nick Vertucci (@NVREA) February 21, 2017
Here’s One Of The Biggest Factors In The Housing Market Price Mixup
Approximately 1.5 million residential homes in the US have been constructed on a by-decade basis. In the decade following 2007, only roughly 1.2 million homes and apartments were constructed.
As basic economics dictates, when the supply of a good decreases, the price skyrockets upwards. That’s one of the biggest factors that has made the median house price listed on real estate markets increase. Especially over the past five years, if not even further.
It’s also important, according to Nick Vertucci, to consider the 2008 subprime lending crisis effect. Because the market fell so dramatically, it’s made the possibility of a strong rebound much more possible. That rebound is exactly what we’re experiencing right now. However, the bubble will burst a bit if wages don’t see a steady increase. The new man in the White House could have a lot to do with what happens next.
Another reason we could see a decline is that people are staying in homes for longer. As recently as one decade ago, in 2007, the average home buyer term was 7 years. Today, they’re likely to spend about 10 years in their homes. That makes for a more motivated market.
Considering Getting Your #RealEstate License? Read This >> https://t.co/H8WLUfo9ij #realestateagent #realtor #REI #investing
— Nick Vertucci (@NVREA) February 21, 2017
Nick Vertucci is a big name in the world of real estate, and has been for a few years. He’s currently the leader of the Nick Vertucci Real Estate Academy, which helps prepare people for the world of realty. Mainly, Nick takes people under his wing, and teaches them about investing in real estate.
That means what to look for when buying a property. But Nick also provides an education on what to avoid, and where your money is best spent. Check out his course at Nick’s official website. Get some advice from Vertucci himself on Twitter.
