The housing market is incredibly strong
The U.S. imposed a 21% tariff on lumber imports in November.
Real estate is still a good deal right now???
As we come too an end-to the real estate Housing Market 2018 Chicago Metro Area, we saw that 2018 was not a normal market. There is differently uncertainty with the 2019 spring market in the U.S. with the lower interest rates we had for the last years and now the federal government has raised interest rates twice in 2018 and possibly another rate increase in December 2018 the 2019 spring market is still unknown.
I believe The low inventory and with interest rates in 2019 close to or over 5%, we will have a seller’s market. The sellers I believe will still have a slight edge in the Chicago Land Metro Area.
That means real estate is still a good deal right now and in 2019.
Yes, house prices have gone up for years. Yes, tariffs have driven house prices even higher.
Regardless, the housing market is still extremely strong, with no supply and lots of demand. That combination means higher house prices are still ahead of us… at least here in The Chicago Metro Area.
The median existing home price in America today is about $250,000. Meanwhile, the median size of a new home in America is roughly 2,500 square feet. So that math is easy – that’s roughly $100 per square foot for the median house.
Forty-five years ago, the math is nearly identical (when you adjust for inflation). The median house size was just over 1,500 square feet. And the inflation-adjusted price of a home in the early 1970s was just over $150,000.
Here’s what this measure looks like over the past 45 years: