It is just not in Tampa Bay and Orlando. It is just not in Florida. This Real Estate Craze is all across the Nation! We have seen some other insane markets in years pass but just last month we have helped over 40 families get into their dream home AND thrive in this market. But there is some big difference between what happened in the 2008 market and what is happening today in 2021. Let’s break it down with Local Expert and CEO Tony Baroni of the Tony Baroni Team. Some Buyers have said that they feel they are paying over top dollar for a home and they think the Real Estate market is going to crash like it did in the past.
“First, the popping of the Real Estate bubble in the 2008 era was driven by mortgage fraud. Pure and simple,” says Tony Baroni. Not the case today. Secondly, per Gary Keller, 2008-2019 real estate builders have not kept up with the pace of building new homes across the nation. Many companies went out of business through the past years or pulled back on the number of homes they were building which started to create a supply issue prior to 2020. Then Covid 19 hit. 2020 was a year no one has seen before. For some people, it will forever change how we feel and see the world. It changed how we see our home and the space we live in.
Americans treasured their safe space of their home. They began to work from home which meant they could work anywhere in the country. And some states restrictions pushed residents to other states where tourism and less restrictions looked appealing. “A typical pattern we have seen is for example, a couple has a graduating Senior go off to college last year and they had decided that they wanted to down size when all their children left and move.
With Covid, they changed their timeline and stayed in their house. Now multiple that by thousands,” says Tony Baroni. “It is now an Economics 101 class of supply and demand.”Covid 19 changed the timeline for Sellers. “It disrupted the natural turnover of the market and created a Supply and Demand issue that we are seeing in today’s market. Low inventory + low interest rates = Housing Frenzy,” says Tony. National Experts are predicting rising Interest Rates which will offset price increases but no expert is predicting a burst. This boom is here to stay.