There will always be periods where markets correct and re-adjust and re-balance. We are in the midst of one of these moments right now. They are a CERTAINTY of economic cycles and are often triggered by shocks. We have had enough of those in the past few years: How long they last and how deep they go is an uncertainty. Uncertainty is scary for most, but it doesn’t have to be. While this is happening we are keeping our eyes peeled on these 6 LONG TERM trends:

1.  UNDERBUILDING: The US has under-built for a decade. Now as rates rise builders are cutting production….when we should be increasing it!

2.  NEXT GEN BUYERS: All of us need shelter, an essential need. 130 million Millennials and Gen-Z-ers are just entering or have already entered prime household formation age. 130 MILLION!

3.  WEALTH TRANSFER: Over $10 TRILLION – with a T – of wealth will be transferred in the next decade in the US alone.

4.  INFLATION. Even with inflation at 2%, building new homes keeps getting more expensive.

5.  MORE BUYERS: Wealthier Baby-boomers are buying two and three homes. Private equity is buying up homes traditionally bought by individuals.

6.  REPLACEMENT: Repairing and replacing existing homes due to extreme weather and an aging housing stock are bound to use up lots of resources for building new homes.

Yes, corrections matter and can be unnerving at times. They cannot be willed away by pretending or burying your head in the sand. It is during these times that a steadfast resolve and fast and decisive action steps are required to weather storms. But all storms pass. Always. While some obsess with short-term trading, keep focused on longterm INVESTING!

How does this translate locally for you in today’s market? We still need more inventory, new construction is primarily an option for the higher price points and if you find a great house that works for you…. don’t wait!

Wishing you a great September!

The Carrie & Renee Team