This is pushing prices up so quickly that many folks think that we are in a bubble. I don’t. Our most recent experience with a bubble was the great recession. It is easy to forget that that was a once-in several-generation event. It was second only to the Great Depression. When we look at the bubble that preceded the Great Recession, it was a market that was driven by easy credit. Anyone with a pulse (and many without!) could get a home loan. This pulled many buyers into the market that otherwise wouldn’t have been able to buy, which led to a greater demand and drove the prices up rapidly.
This market feels the same because the prices are rising so quickly. It isn’t. This market is being driven by wealth and immigration to the State. New construction just can’t keep up with the demand. So many workers got out of the trades during the recession that now there is a huge shortage of labor to build homes. It is to the point that Oakwood Homes has started a school to get more people into the business.
Lots of folks moving here, lots of cash buyers, nobody around to build new houses, low interest rates. This is a perfect storm with no end in sight. For those thinking about selling, you should be river-dancing! Buying takes a pretty thick stomach lining, but is absolutely worth the effort because the interest rates are so low. If you have a freakish love of data, view our report! LOL!