Real estate experts and economists are worried that the stagnant real estate market could lead to an economic slowdown. Many economists have predicted a recession in the last quarter of this year or the first quarter of next year. The slowdown in the Washington D.C. housing market can compound the problem and also get further worsened due to the recession.
Panelists discussing the Outlook for Home Prices and Residential Construction at the 2018 edition of Realtors Legislative Meetings & Trade Expo highlighted the problem of low inventory of houses that has increased prices. The micro and macro economy is immensely influenced by real estate, especially the housing market. The speakers were unanimous in concluding that new home construction is the only remedy for a crisis in the making. Large markets such as Washington D.C. and even tier two & three cities are witnessing a sustained slowdown. The inventory is shrinking further and the prices are going to rise to make matters worse if new home construction does not pick up.
There was a sense of anxiety among the audience at the event. The founder of Dependable Homebuyers, Evan Roberts addressed the fear of many and clarified that there is no bubble right now and there is no indication of an impending housing market collapse. However, he added that there is a crisis for first time buyers who are unable to reason with the inflated home prices. Roberts explained that the home prices to income ratio is not conducive. It is not in favor of buyers. The debt to income ratio is also not anywhere close to its ideal range. If the home prices to income ratio worsens and the debt to income ratio is not reduced, then both can scale towards the figures during the months preceding the financial meltdown a decade ago.
Young first time buyers need affordable housing. The shortage of houses for sale does not augur well for their quests. Many have hence decided to rent and are not even thinking of buying houses anytime in the near future. This leads to a shortage of demand. There is already limited supply of new homes. A shortage will further curtail the developments of new homes. There can be a spiraling and codependent effect. The causal effects and correlation between the two can lead to a serious affordability crisis and that can bring about unforeseen ripples across the real estate industry in Washington D.C. and beyond. Interested homeowners can read a recent press release they published at https://drive.google.com/a/dependablehomebuyers.com/file/d/1pJDI-KCbCY082y2kbElbZZultQ1qt8F1/preview.
Evan Roberts has warned that such developments can lead to a bubble and if the recession does hit the nationwide economy next year then the situation can easily get beyond control of individual players or associations in the real estate sector. Roberts agreed with fellow panelists encouraged new construction and not just in some neighborhoods or as a part of an overhaul but on a large scale in Washington D.C. Such a development will also boost the economy and can actually prevent a recession at the micro level. For more details, contact Dependable Homebuyers directly.
SOURCE: Press Advantage [Link]
Dependable Homebuyers is a local home buying company in Washington, DC. We buy houses in any condition and any situation. If you want to sell your house fast, give us a call at (202) 503-2783 and we’ll provide you a cash offer within 24 hours.
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