What’s Causing The Current Housing Market Boom?
There’s been a lot of questions and “noise” (including outrage from home buyers) around the topic of what’s been causing the boom in house prices over the last few years.
Now for home sellers, it’s largely been great news because their home is worth more, but buyers have definitely not been happy with rising home prices (for obvious reasons)…
So in this FAQ video, I answer the question about what has caused this boom.
BTW, once you’ve watched this video, you might also like to check out another video I recorded answering the question “Is the Property Marketing Going to Crash?”.
This video segment was pulled from a long interview I did back in Feb 2022, where I answered a heap of frequently asked questions (FAQ) about real estate.
Once you’ve watched the video, let me know your thoughts and any extra questions you have on the topic in the comments below.
Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.
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So, the current housing boom at the moment… the cause, what started it?
Basically, supply and demand.
So, quite obviously, during COVID, we had hurdle after hurdle of being able to bring property to market.
We had obstacles in getting people through to inspect properties, those sort of things but, home became really, really, really important.
So, there was this influx of people who were wanting to improve their situation.
But end of the day, supply, demand, basic economics 101. Yes, I did actually pay attention to it at high school.
So supply and demand is there. You will always have that shift.
So, then you’ve got interest rates.
We have never, ever, ever, ever had money be so cheap to buy.
So, basically what that has done is given people the capacity to repay higher loan amounts.
So, if you qualify for more money and you can sit there and say, well I can afford to pay that back because the interest rates are here.
Then you are going to in a competitive market because supply and demand, in a competitive market, you are going to have to stretch your budget and you’re going to have to offer higher. And that has caused this up swing.