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Housing Demand Boom Ahead!

By
Real Estate Agent with Keller Williams/Mountain Town Realty Group

The latest news from The National Association of REALTORS® is great for home owners and should send a clear message to prospective buyers to jump in the market while the prices are low. Prices are going to go up; and they are going to go up a lot. We know this from the latest population numbers to be released by the U.S. Census Bureau.

The census figures tell us the following:

  • Every 13 seconds, the population of the U.S. increases by one.
  • There is one birth in the U.S. every eight seconds.
  • There is one death in the U.S. every eleven seconds.
  • There is one migration to the U.S. every thirty seconds.

What we can conclude from this data is that the population of the U.S. is growing at a very healthy rate. There were 3,000,000 new Americans in 2007 alone. With a larger population comes a much greater demand for housing. Families grow and need bigger homes; teenagers turn into adults and need their own homes and this puts pressure on the housing market to provide for them. In the long run, property is a very attractive investment, and as the population continues to grow, it is going to look even better.

"With a population increase of 3 million, household formation typically expands by up to 1.5 million," said NAR Chief Economist Lawrence Yun.

In 2007, 650,000 new households were formed, not quite the 1.5 million that figures would predict, due chiefly to the fact that many people are either sharing with roommates or living with family longer than usual. Again, this is great news for property owners because at sometime in the future these people are going to start looking for their own homes. It is certainly an exciting time to be in the housing market.

Source: IMB Home Lending

Comments (2)

Debra Drummond
RE/MAX Gallery - Plymouth, MI
MichiganMoves Real Estate in SE Michigan

I say, bring on the buyers...LOL

Seriously, let's hope the recovery is right around the corner!

Mar 22, 2008 09:28 AM
Mike Varoz
Summit Sothebys International Realty - Park City, UT
Billie - this record snow fall won't hurt us here in Park City ---- There had to have been a few nights when everybody was snowed in and thus contributing to the procreation of our world!!!
Mar 27, 2008 06:25 AM