CEO For Major Real Estate Firm Gives Bold Claim About The Housing Market

Michael Miedler, the chief executive over at Century 21, has stated that the real estate market in America will continue to stay hot for the foreseeable future.

As part of an interview held with Maria Bartiromo, an anchor for Fox Business, Miedler went on to talk about how the market is still  hot due to the fact that “a lot of buyers are trying to rush in and beat any more increases in the mortgage rate.” he added on that he still sees “the market moving in a very kind of fast direction as folks have a lot of pent-up demand in trying to buy homes here in this country.”

Despite all of this, there is a relatively low supply of brand new homes: “From the downturn that happened in 2008 to where we are at now, we are at historic lows on where folks are building.”

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“Here is the truth of the matter; between 2012 and 2021 there were close to 12 million new household formations and we only put 7 million homes built in this country, so we have to double the pace in the next five years to catch up with the demand that’s out there,” he stated.

As reported by the National Association of Realtors’ Profile of Home Buyers and Sellers survey, which watched the actions of buyers between July of 2020 and June of 2021, the real estate market in America is leaning more in favor of sellers:

Among repeat home buyers and home sellers over the last year, a key factor for moving was the desire to live closer to family and friends, while an equally important motivator was the need for more space or a bigger home. Sellers as a whole were able to benefit in these transactions, typically earning their full asking price, and selling in one week.

Many other trends have also gone on to report close to the same conclusion:

For all sellers, the most commonly cited reason for selling their home was the desire to move closer to friends and family (18%), that it was too small (17%), and the neighborhood had become less desirable (11%).

For recently sold homes, the final sales price was a median of 100% of the final listing price. Only 26% of all sellers offered incentives to attract buyers, a drop from 46% of all sellers last year.

“Buyers moving quickly during the pandemic, coupled with all-time-low inventory, led to a decline in time on market to the shortest ever recorded, which was just one week,” stated Jessica Lautz, an executive with the National Association of Realtors.

because of the evident tight supply of housing, many investment banks are snapping up single-family homes in order to make a profit by raising rent along with the increasing property values. As reported by CNN Business:

In the first three months of this year, nearly a quarter of all homes sold in the United States were going to investors. That’s a broad umbrella that covers everything from mega institutions to individuals buying vacation homes, but BlackRock, JPMorgan Chase and Goldman Sachs were among the big-name buyers.

Institutional investors still own only about 2% of all single-family rentals in the United States, or roughly 300,000 homes, according to John Burns research director Rick Palacios.

 

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