Total existing-home sales—completed transactions that include single-family homes, townhomes, condominiums and co-ops—rose 3.1% from December to a seasonally adjusted annual rate of 4.00 million in January.
PUTNAM POSTING: Is Putnam County Headed Towards a Housing Crisis?
I recently read a prediction by a friend Steve Hawks of Platinum Real Estate on Las Vegas, who is extremely knowledgeable on all things financial and real estate related. He predicts that home prices are set to soar another 16% in 2022. His predictions are backed or inspired by the top bank in the country—Goldman Sachs.
Steve predicts that this will prompt Wall Street to get busy spending millions, billions and trillions of dollars on houses in 2022 if they can find them!
If you think about it, 16% is not exactly a bold statement. It looks like inflation is probably going to be between 8% and 10%. So,16% is only actually an estimated 6% return.
With that in mind, we could easily see homes going up another 20%. especially when you have inflation continuing to keep accelerating into next year.
We have seen a little of it in the Hudson Valley region so far but we will begin to see new hedge funds coming to the area with millions and billions of dollars trying to soak up all the single-family homes under $500,000. With inventory already low, the availability of houses for sale will not be able to satisfy their ferocious appetite for single-family homes. Steve predicts that the hedge fund wars for single-family assets will be shocking, forcing FHA buyers into a tailspin that began prior to the COVID-19 pandemic housing rush.
What does this mean for Putnam County? Well in my opinion, towns need to reverse their archaic thinking of being anti cluster and affordable housing. The ignorance that exists against affordable and cluster housing needs to be addressed and transformed to avoid a local housing crisis. Our children will be forced out of living here due to a lack of affordability caused in large part by the lack of availability.
Creating affordable housing developed specifically for end users will ensure that those in need of housing that choose to make Putnam County their home can afford to buy here. These projects will also provide rental units for those who are not ready to buy. If we wait too long, we will find ourselves in a housing crisis that becomes impossible to resolve.