Making sense of what’s going on in the housing market
As anyone recently or currently going through the house shopping process this is nothing like 2007. Buyers are competing against other buyers with seemingly unlimited cash offers. Which is nothing like the subprime, stated income loans prior to the financial crash. You have to be in great financial shape to even qualify to buy a home. And then you have to do it timely enough to beat other offers. There is more cash moving around these days and not a lot of places to put it. Conservative banks, investors, and pensions are placing them in the few sure things left on the market, bonds and property.Also, inventory is drying up because construction has been heavily affected by the pandemic. Now that the warehouses have been exhausted it's just starting to ripple through supply chains. While the millions of lives lost were felt immediately the long tail of JIT supply chains means we'll be feeling the effects a hell of a lot longer.