In the ever-changing housing market, it's hard to stay up to date on the latest news. And if you're anything like me, you don't want to spend hours sifting through dry housing market articles with language that's impossible to understand. But don't worry, you don't have to.
In this recent episode of The GoGedders, host Richie Burke sits down with housing financial expert Steve Greiff. Our friend Steve is the Senior Vice President and Director of Mortgage at Johnson Financial Group – so to say he knows what he's talking about is an understatement. Steve breaks down the ins and outs of today's housing market in a digestible and entertaining way.
Throughout the episode, you'll learn about today's housing market and what that means for both buyers and sellers. He'll answer questions like: Why is it a "seller's market" right now? How long will the seller's market last? Is now a good time to buy (or sell) a house? And some advice on how to prepare emotionally and financially for one of the largest financial transactions you may make. To listen to the full episode, click below, or for a brief overview, keep on reading.
We've all heard of the law of "supply and demand," but what does this actually mean, and how does it affect the housing market? As millennials are getting older, they're getting to the age where they're ready to settle down; and for many, this means buying a home. And while the demand for houses increasing may seem like a good thing, the supply of houses cannot sustain the demand and this, in turn, causes the prices to soar well above asking.
Steve goes on to mention that not only are buyers overpaying for homes due to the demand, but the cost of building supplies, the lack of workers and supply chain issues all factor into the price. He states that this will persist through 2023 as "a huge injection of inventory would tip the scales." The only thing that could change it is the increase in interest rates as there was recently a "hefty" increase, going from 3% to 5%. And while this increase may seem drastic, it is nothing compared to the 16% experienced in the past.
Steve goes on to share further insights into what is causing the housing market to be where it's at today and what homebuyers should do to prepare themselves for this environment. He ends by mentioning that regardless of where the housing market is currently at, it's important to surround yourself with a strong financial support service to help along the way.
To learn more about creating a strong financial plan, visit Johnsonfinancialgroup.com.
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The podcast is produced by GGMM.
