3 Chronic Aspects of the Housing Market Shift



Many people would tell you NO right away if they're asked would they buy a house in 2022?

And the few reasons why would be pinned on the problems of inflation, or COVID-19, and most commonly financial issues.


And yeah, that's the basic response one would expect.


Even so, there has been a change in the dynamics for the housing market. 


Change ups such as a buyer demand increase are well noted, yet there's an economic spike in interest rates that has many people worried. 


Other aspects come into play such as finding the right location to settle down.

 

All of these compounding issues have drummed up a level of uncertainty within the housing market.


So, would it be a great time to jump in to become a homeowner?


Well, that's a topic that will require a bit of deeper digging to firmly assert the matter.


#1 - Analyzing the Housing Market Shift 

Some people believe that this is a great time to purchase a home, despite the economic factors that would suggest otherwise.


Now these are people who are probably in a better position to buy, if that's the case. 


They're more likely to consider it as a prime option, rather than resort to renting an apartment.  


There have been public surveys conducted to determine whether or not it's wise to take on the responsibilities of owning a home.   


These are long time questions that have been talked about as far back as 1978. 


For it was the earliest time known where homeownership had dropped below 50%

 

This was stated in a Gallup's annual Economy and Personal Finance poll conducted April 1-19. 


In the U.S., around 46% of respondents describe their financial status as sustainable or excellent. 


That's a stark difference from the previous year, where 57% of people stated otherwise.


So, there's no denying the various shifts taking place within the buyer's market.


And that's why you have some people saying... 


"Yeah, it's the right time to get into a house!"


While others will say...


"NO WAY JOSE! I CAN'T AFFORD IT!!"


"My Piggy Bank is so DAMN Broken!!"


And thus, many are left with these shifting opinions, whether they should or shouldn't buy.


And trying to decide where to go from there only adds to the frustration!

 

But what about the other factors could topple this already fragmented structure?


Well, there's no doubt it's economically related.    


#2 - Economic Factors Surrounding the Housing Market 

Realtors and homeowners have one thing in common...


And that's the location which brings value to a home. It's the key element that attracts potential buyers.


That means it will take a decent amount of capital to put toward 

the monthly payments.     


And that's a prime reason why people are paying, because they're applying financial value toward their homes.


This was stated at zillow.com the Home Value Index.  


Where the main focal point centers around great locations as a key element of the Real Estate Market. 


A testament to that is the fast-elevating suburb of Woodinville, Washington. 


It's a community gaining much attention despite the pricey properties situated there.  

 

It was stated in April 2022, that the going price for a middle-class homeowner was $344,141.


And people are willing to pay it, in exchange for a great place to reside. 

 

However, the only thing to counter any of that will be the rising levels of taxation.


And that's what worries more and more homeowners as we progress further into the 2020 decade. 

 

Anyone who believes that to be the latter, is only kidding themselves!

 

Some may think the ongoing war conflict between Russia and Ukraine serves as a major factor in all of it. 


And while taxpayers are going to get hit, will more taxation be stemming from it is a given!

 

Yet, it's only one of the root causes that pillages from their monetary resources.


Other factors such as the supply chain issue, the baby formula shortage, or the electric car revolution are just at the tip of the iceberg.


#3 - What A Hard Shift Could do to the Housing Market 

Speaking of which, there is a new push for the advancements within the auto industry.


Although, these advancements may be the very thing to topple the housing market in terms of the staggering costs taxpayers will get stuck with.

 

The story goes that automakers GM, Ford, and Chrysler have endorsed the plan for Pro-Electric Car Manufacturing. 

 

How many don't see where I am going with this is to be expected I'm sure, although, a more astute individual surely does.


And the thing I'm thinking about is your monthly budget!

 

How will you be able to make the payments on your house, versus the payments of a brand spanking new electric car?


Is that something you can afford right now, even if you do have a well-paying job?

 

Nevertheless, this comes from an executive order through the current administration, who’s all in for the switch to electric from gas powered engines.


Credit: www.cars.com

The cheapest electric vehicle such as the KIA EV6 will run you close to $45,000!  

 

Now that doesn't even count anyone who is still making student monthly payments, or cellular plans. 


On top of that are the everyday excise tax products that nickel and dime you until your pockets are picked clean.

 

Those are just a few of the concerns people are talking about, and how it deters them from becoming a homeowner.

 

And one would have to think how worse things could get.


Will it come to a point where people abandon the housing market altogether, and become wandering nomads?

 

Oh man, it's just hard to say where all of this will ultimately lead individuals within this nation! 


Conclusion


Yes, we're living in VERY scary times; even so, no one should have to give up their dreams of becoming a homeowner.


The biggest fear is that no one wants to end up with a house that turns into a HUGE BAG OF UNFETTERED DEBT!


After all, owning a home does involve a level of risk; and that's something you'll have to bear in mind at all times. 


The key thing is to focus on making the monthly payments toward it.


When it comes down to whether or not you should buy a home. 


Well, that comes down to timing.


So, ask yourself... 


"Am I REALLY ready to take this on?"


So, like anything else in life, it will always come down to that iconic question we ask ourselves at one point.


But if you're ready to make the transition, then do so; but always keep in mind to do your due diligence.


In other words, don't take it from me, or anyone else for that matter; keep going and find out for yourself! :D

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