House Prices Down So Why Are We Buying Houses Again



The house market has changed significantly in the past three months. What’s the main reason for this change? Low inventory, geopolitical events, Interest rate hikes, or New-builds? All these factors are likely to have some impact on housing prices in the future. Read on for more information. Despite this change, some Flat Fee Real Estate investors are still buying houses at lower prices than they were three months ago.

Low Inventory

While the housing market is teetering on the brink of another bubble, many people are using low inventory as a reason to buy houses again. A lack of new construction is one reason for the shortage. With interest rates lower than average and a lack of new homes on the market, more buyers are turning to existing homes than ever before. Meanwhile, the lack of new homes on the market is another. Builders have been grappling with unstable building supplies and the scarcity of skilled tradespeople. Permits for new builds fell by 24% in 2020 and have not recovered yet in 2022.

Another possible reason for low inventory is the housing crisis of 2008, which caused a shortage of new homes on the market. The housing crisis led to a severe shortage of housing and a massive influx of millennial homebuyers. Both factors contributed to the low inventory and the high prices. The housing market is now in a better position than it was even five years ago. However, many homeowners are holding off on selling their primary home, waiting to see whether they can find a new one to replace their old one.

Geo Political Events

One of the biggest concerns for investors is the potential effect of geopolitical events on house prices. While the Russian invasion of Ukraine is a significant concern, its political and economic repercussions have a direct effect on your portfolio. So, how can you protect yourself against geopolitical risks? Geopolitical events can have a significant impact on property values, so make sure to check your portfolio regularly.

Interest Rate Hikes

The latest housing data from the National Association of Realtors will provide an even closer look at the U.S. housing market’s recent shift. As home prices have continued to rise, the real cost of buying a house has increased as well. As a result, buyers need bigger mortgages and interest rates have risen to near six percent. If the trend continues, housing prices could reach double-digits.

With prices soaring, the Federal Reserve is increasing interest rates at a rapid pace to slow the economy and stabilize prices without hurting employment. Already this year, the Fed has raised interest rates 1.5 percentage points. In a recent interview, Blank said the rise in interest rates was driving Americans to buy homes again. However, many investors are still wary of the Fed’s new policy, believing that the hike is necessary for the nation’s economy to remain stable.

New Builds

The housing market is picking up again. Although new construction hasn’t had a major effect on house prices so far this year or this summer, it has slowed construction. That’s because builders are building houses at a reasonable clip but can’t finish them due to supply chain problems. There’s also a glut of unsold homes on the market and that’s causing the demand for existing homes to fall.

The housing market has become incredibly tight, with an estimated 3 million homes unbuildable in the U.S. alone. This is despite the fact that mortgage interest rates are still historically low. Homebuyers have also been having a tough time finding homes on the market. The housing bubble collapse in 2008 was one of the worst since the Great Depression, with many homebuilders going out of business.


It is true that Flat fee MLS listing house prices fell during the Great Recession, but they didn’t drop as much in the four subsequent modern recessions. Recessions tend to affect the entire economy, including the housing market, but historically, the housing market has rebounded much faster than the overall economy. In fact, four of the past five recessions ended with home prices increasing or remaining stable. Recessions can also affect the housing market, with prices generally staying flat or falling, and the number of houses for sale rising.

In general, buying a house during a recession may not be a bad idea, as the price of a home will depreciate, but the potential for a great deal is very high. Moreover, it may be easier to get financing during a recession if you have strong credit. Furthermore, you may need a substantial down payment to reduce the risk to the lender. As a result, it is important to do your homework and have your finances in order before you make a final decision. In addition, buying a house during a recession may not be an easy task, and you may not find a suitable house easily.

Lack of High Paying Jobs

The housing market boomed from 1997 to 2012, attracting workers from all over the world. Cities got prettier, safer, and more exciting. Sadly, the housing supply was not enough to meet the new demand. With the housing boom in reversal, the cost of housing fell and cities’ house prices declined. The problem? The demand for housing outstripped the supply. That led to a housing bubble.

To measure affordable housing, Benner and Karner used a data set published by the U.S. Census Bureau and its state partners. This dataset contains information on employment characteristics and commute flows at census block level. For example, the Bay Area study uses the number of jobs that pay $1250 per month or less as a measure of low-wage jobs. But other cities have more affordable rental units, which means the housing bubble will keep building.

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