What could cause the roaring housing market to slow down?
In this episode, Steve Murray, RealTrends advisor and industry stalwart, examines what could cause the roaring housing market to slow down, discusses the new $15,000 tax credit and analyzes the audience for the aggressive, low-cost brokerage model.
Here is a small preview of the interview, which has been lightly edited for length and clarity:
Housing market: We have measured one key statistic about housing sales for years, both new and existing housing sales. And it’s a barometer that we look at consistently to determine is the market balanced? Is it stone-cold, or is it raging hot? So here’s some information to think about. The best barometer of where we are with the housing market, we have found over 40 years of data is the percentage of all households, both owner and renter households that bought a home in a given year. We have 40 years of data on this.
$15,000 tax credit: With impact fees, cost of lumber, cost of land, cost of labor soaring also, it would seem that the federal government should subsidize supply, not demand. We don’t need more demand in the housing market right now. We need more supply of lower cost, affordable housing for people to buy. Particularly first-generation or first-time home buyers.
Findings from this year’s RealTrends 500: It’s interesting to note, when you look at the composition of the top firms in the country, we noticed that four of the top 10 and eight of the top 20, and also some of the fastest growing firms, are what would be considered low-cost brokerages. People like eXp, Fathom Realty, United Real Estate and others like them are not only eight of the top 20 brokers in the country now, but they’re also among the fastest-growing companies in the industry right now.
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