MortgagesThe Advantages of PreapprovalBy VICKIE ELMER WITH the housing market warming up in many areas, and multiple offers becoming more commonplace, buyers who want an advantage
Classic Law Of Supply And Demand In Local Real Estate
Dated: February 8 2021
The effect of classic supply and demand on the housing market is definitely in play here. As cost goes down (in the current real estate market, historically low mortgage rates have caused the bottom to drop out on the effective cost of home purchasing) the demand goes up and the supply evaporates, the prices increase.
There has always been promised a time when equilibrium is met and there is a cooling of demand, but folks will always need a place to live and the real estate industry (often restrained by public infrastructure and public outcry) has suffered an inability to meet supply demands.
I just ran across a new construction home in Prairieville priced at nearly $185 per square foot of living area. Meanwhile, the effect on the rental pricing is similarly astronomical.
A local official recently lamented to me that he worried about where our Ascension Parish children and grandchildren are going to live. I wonder how they are going to afford it, wherever that is.
Care to comment?