This equation doesn’t add up!

Salary - more taxes + higher consumer debt  – inflation  -  less available income  for buyers  +  Increased home prices  +  higher interest rates  –  lack of supply  =  a problem for homebuyers

 

The market used to be well defined. I am not so sure anymore. I do know that your own personal perspective will define how you will proceed. We seemed to have skipped a balanced market and shifted to a seller’s market overnight.

The Fed says inflation is under control?  Is it? I think prices are up across the board for all products.

Interest rates are rising.

Is that a good thing or a bad thing?

 

 Home prices are skyrocketing.

Is that a good thing or a bad thing?

 

Is the housing market STILL upside down?

In my opinion, the housing market remains upside down and is currently working on adrenaline.

This will wear off soon due to the inability to meet the demand and as we move into the winter months, everything will slow down.  

Housing has always been a reactive industry with wide reaching consequences for every American.  Maybe the equation above is wrong. Maybe the answer is a balanced market for sellers and buyers. However, the total number of transactions will be a new norm.

If that is the case in 2014, WHERE will our children live?