The U.S. is at the beginning of a tidal wave of homes hitting the market on the scale of the housing bubble in the mid-2000s. What happens when so many homes post ‘For Sale’ signs around the same time?
The real estate market in the U.S. could enter a down turn in under five years, with one of the largest online real estate company Zillow predicting that it will happen in 2020. This seems like an odd statement coming from a company that has just started it’s real estate acquisition phase. It may be a little self serving to have the market correct itself so Zillow can come in and purchase at a lower than actual value.
Colorado real estate agents have seen a very hot market for about 4 years now. With homes appreciating in double digits every year. There have been a few different theories on the reason why. If you ask some folks they contribute the booming real estate market on legalization. The timing does sort of match up with the increase. The problem with this theory is many other states have made it legal and haven’t seen the huge increase and influx of people moving in. California is seeing a decrease in population after legalizing. People are flowing out of California at a faster rate than many other states. Since the industry doesn’t actually add that many jobs to the economy it seems like this is an unlikely factor in the increase of home values.