The Housing Market JUST Went From BAD To WORSE

Go to http://public.com/graham and you’ll receive a free stock worth up to $50 once you open an account! Today, we’re talking about the real estate market, why it’s going up so much in price, and how you can buy a house in 2021 – Enjoy! Add me on Instagram: GPStephan
*This is not investment advice. Offer valid for U.S. residents 18+ and subject to account approval. See Public.com/disclosures/

JOIN THE WEEKLY MENTORSHIP – https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/

THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw

The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF

Right now, with all the demand for housing, property developers are on a MISSION to build homes as quickly as they possibly can…but, there’s a problem: they can’t keep up with demand…because they don’t have enough materials to build from. In the last year, LUMBER PRICES have gone up a whopping 200%.

Some analysis’s are actually calling for this to be the NEXT housing crisis…but, instead of it being caused by a wave of mortgage defaults on nonperforming loans…it’s caused by a lack of lumber, increasing the COST to build a new home by an average of $24,000.

To make matters worse, constraints in supply chains make it nearly impossible to produce the amount of materials needed to keep up with demand – meaning, at least in the short term, housing could remain unusually high – and the increase cost of building winds up being passed on to you, as the customer, in the form of a higher list price.

There is also a new proposal aimed at curbing the housing shortage within the infrastructure package: The plan would look to eliminate zoning and land use policies, which include minimum lot sizes, mandatory parking requirements, and prohibitions of multifamily housing. In its place, the zoning requirements would be restructured in a way that would reflect the current housing shortage, and the NEED to build more real estate in areas which would’ve otherwise have been off limits.

I THINK easing up on zoning CAN be a good thing for cities experiencing a housing shortage, and I do think we need to update the zoning requirement to account for the present day reality that not everyone needs a car parked on site…and that would HELP. BUT, as far as how this is written, unfortunately, it might not be enough.

Since this infrastructure plan would take place over 10 years, that probably won’t give any immediate relief to the housing market. And also – BECAUSE this gives a tax incentive…wealthier cities, who have the biggest housing shortage to begin with, have very little reason to actually go for it, because THEY don’t need the money to begin with.

So, in short…from my perspective, the whole plan has some good intentions, but ultimately…it might not have as much of an impact on the housing market as expected….

AND REALLY…At the end of the day…the housing market doesn’t really appear to show any immediate signs of slowing down. Interest rates are estimated to stay low for another 2 years, it could take 18 months or longer for building materials to come down in price, and until then – there’s still a housing shortage.

Obviously, these conditions can’t last forever – and when there’s such an imbalance between the number of buyers in the market and the number of homes for sale, EVENTUALLY – the tides will change. But, until then, if you’re in the market for a home – be patient, and only purchase a property that you intend on keeping for at least 5-10 years. That way, IF the market goes down – it won’t have an immediate impact on you – because, at this point – anything can happen. Rising interest rates, more inventory, and any change in policy COULD have an effect on housing – but, in the short term, if everything stays relatively the same – housing could very well continue going up.

My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/

source