SARASOTA, FL / ACCESSWIRE / September 10, 2021 / As many folks say, the housing market is red-hot right now, and that is the story across the nation. This has been the case for quite some time, with no sign of slowing down. There are several factors that come into play, Jeff LaBelle is the president and CEO of Gulf Coast Wealth Advisors and has seen many ups and downs in his over thirty years in the business. Over the last year and a half, he has carefully watched the market trends to provide guidance to clients and give some insight on where the housing market is, where it might be going, and what role COVID-19 has played.
Home sales crashed at the start of the pandemic, dropping in May and April 2020, reached their lowest levels since the financial crisis of 2007/2008. Wary sellers were reluctant to open their homes up as virus cases surged, and uncertainty with jobs and finances led many buyers to put their home search on hold. By October, however, home sales had more than recovered, hitting a 15-year high and it has been for over a year what is referred to as a seller's market, and there is currently an epic disproportion between supply and demand, the demand far surpassing the current supply. Bidding wars are common, rising to truly remarkable levels, with homes selling far above the asking price. This housing boom started mid pandemic, as many people were isolated at home, transportation and business slowed down, and people realized they wanted a different space to be in.
As the country spent more time at home than ever before, the importance of owning that home seemed to increase. In a market that already was experiencing low supply and high demand, things simply jumped into overdrive. Motivated buyers are taking advantage of historically low-interest rates on loans, something that has driven the urge to buy through the roof.
Multiple factors have impacted the steady rise in home prices and demand; however, a lumber shortage has driven the price of wood through the roof and made new construction slower and more expensive. Inflation has had an impact, leading developers to question if now is a good time to build; while homes are selling for higher prices, they are far more expensive to build, cutting into the profit margin for developers.
As the nation recovers and starts to reopen, the housing market seems only to be building steam, more and more homeowners are selling.
"As an investment advisor representative I have to keep my pulse on the economy and that means what's happening with inflation i.e. interest rates. What sectors are doing well based on the recovery from COVID and what opportunities does it make available? "
LaBelle shares that he believes the current trend of the market will continue for at least some time, as housing starts are delayed, however, once the supply increases in a year or so, we may see some different things happening in the market, and prices may see a lull as well. Elements that will affect the real estate trends include unemployment, inflationary pressures, and other COVID-related factors.
Jeff LaBelle is the president and CEO of Gulf Coast Wealth Advisors with extensive knowledge and experience in the financial industry, and a thriving practice in Downtown Sarasota, LaBelle is a fee-based advisor who specializes in conservative customized portfolios. Learn more and connect with Jeff LaBelle through the Gulf Coast Wealth Advisors website.
Jeffrey Labelle offers Investment Advisory Services through Kovack Advisors, Inc. an SEC Registered Investment Advisor, 6451 N. Federal Highway, Suite 1201, Ft. Lauderdale, FL 33308 (954) 482-7771. Gulf Coast Wealth Advisors is not affiliated with Kovack Advisors, Inc. Jeffrey Labelle is registered as an Investment Advisor Representative in Florida.
Sources:
https://internationalbanker.com/finance/why-us-real-estate-has-prospered-during-covid/
https://www.nar.realtor/research-and-statistics
Company Name: Gulf Coast Wealth Advisors
Contact Person: Jeffrey LaBelle
Address: 1 S School Avenue, Suite 501, Sarasota, FL 34237 United States
Phone Number: 941-362-0700
Website Link: http://gulfcoastwealthadvisors.com/
SOURCE: Gulf Coast Wealth Advisors
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https://www.accesswire.com/663585/Talking-About-The-COVID-19-Housing-Boom-With-Jeff-LaBelle-President-And-CEO-Of-Gulf-Coast-Wealth-Advisors
