Business Op Ed: Will the housing market ever be affordable?

By R.S. Broker

Its for good reason, the law of supply and demand. Demand for houses are so high relative to the supply available for sale, in which prices for housing saw a 19.6% year over year ending 2021. There aren’t many hoses for sale, and when they are, sellers are receiving multiple offers.

Uptown has always been  a good place to live. As you know, because this is a uptown newspaper, It’s a middle class section of Philadelphia, located in the northwest side of the city. 75% of the residents who live in this area are homeowners. In San Francisco, there was a home called “the worst house on the block” sold for $2 Million in a auction See image below. Its not much to look at, and if you ask me, it looks like the developer forgot to add a second floor. The point is that this house that looks like it needs a total rehab, and currently unlivable, sold for $2M. 

The US housing market has doubled since the Great Recession, and it gain over $6 Trillion in 2021. You can see this in our area, Uptown (Mt Airy, West Oak Lane, Germantown). Houses all over these sections of the city went up 100%-300% in the last 10-15 years. Ask one of these homeowners tell you, they nevcer thought they see these prices rise so fast. For, example, there is a rowhome that just sold on 1300 block of Sharpnack st that sold for almost $300,000. Its fully rehabbed, and has all the new modern eminities anyone would love to have. However, 10 years ago, these homes were selling for $100K.  

After recognizing prices skyrocketed, and add in the homeless problems we have in the USA, those are the biggest reason for these increases. But help could be around the corner. Interest rates are to climb between end of 2022 though 2024. And when interest rates rise, housing prices fall. Also, there could be foreclosures coming as rates rises. Lastly, theres likely no more stimulus checks coming because of employment opportunities available. 

In short, prices will fall. It always does, and we are due for a market correction. Just have your money ready so you don’t miss the opportunity of buying one. If you want to invest, please talk to your local bank or a financial advisor. Whether your 20 or 60, a new transfer of wealth is upon the horizon. This isn’t just the USA going through a change. The whole world is… It won’t be easy, but you never know until to try. Oh, and don’t forget to follow me on IG or YouTube at @TheGetMoneyShow. Believe in yourself, believe in your dreams, and always remember money a’int just green.  We are not financial advisors or giving out financial recommendations. Link to invest in cryptocurrency