The real estate market continues to boggle the mind. Despite high unemployment, residential markets continue to see prices escalate. Low interest rates and a lack of inventory are fueling this phenomenon.
But what causes this? Over the past 20 years, cities and towns have systematically held back new construction. It is called the “drawbridge effect.” They have imposed layers of building guidelines that are exceedingly difficult, impeding new construction. Most towns never have a housing or building master plan. Now that housing has become a national problem, we hope to see some easing of these restrictions. Additionally, due to COVID-19, restrictions and changes in work life and home life (kids schooling from home), people are leaving the city for the suburbs. We will be addressing these problems as the year goes along.
If you are thinking about buying this year, remember you need to get pre-approved! Be sure to contact us for help.
-JR