Some experts question whether the current pace of residential home sales is sustainable. While some may worry that too many people are buying homes as seen in 2004-2006 and fear we may be headed toward another housing crisis, there is evidence that we are actually experiencing a very healthy real estate market when we carefully look at the numbers.
Some are considering the past three years of home sales in comparison to the three years just prior to the housing bubble as seen in the graph below. Looking at this graph, we can understand where the concern is coming from.
However, this is not the whole picture. The real picture can only be seen when we go further back in history and take out the "boom & bust" years, showing that the pace of sales is actually growing at quite a natural rate.
Also, new home sales are far below historic numbers. According to Trull's Chief Economist, Ralph Mclaughlin, "Adjusted for population, [new home sales] are at about 63% of their fifty-year average level - way better than 2011, but nowhere near heated." In short, yes, the current pace of residential home sales definitely seems sustainable.
If you are interested in buying your dream home in Greenwood or selling a residential property and would like more information on the current real estate market, please visit our website or contact us at (864)341-7774 or lakegreenwoodproperty@gmail.com.
