How to Protect Yourself from the Housing Bubble | Think Realty | A Real Estate of Mind
How to Protect Yourself from the Housing Bubble | Think Realty | A Real Estate of Mind
Abstract
In January 2022, home prices skyrocketed again as home inventories reached record lows. Huge driving factors are fewer builders, an increase in construction material costs, and more people moving to cities faster than ever, making home prices almost unaffordable for most people in America. The median price of a home has topped $350,000 nationally. For starters, to be able to buy a home at this price, you'll need roughly $70k for a down payment, which eliminates most of the U.S. population from purchasing a home. To buy a home, you need a factor called "The ability curve," meaning someone can buy the property if they have the cash to do so. The spike in home prices is scary for most people because they just don't have the money for a down payment. We have a shortage of homes in America, and we have an extremely high demand for housing in some places.