Eiendomsmegleren nr. 3 - 2022

EIENDOMSMEGLEREN NR 03-2022 15 STUDENTER STUDENTER LEDELSEN LEDELSEN VERDT Å VITE VERDT Å VITE FAGSTOFF FAGSTOFF FRITID FRITID largest group in America are retiring and want smaller, retirement style homes. The largest group, Millenials, are all starting to buy bigger, family homes. And this does not even take into account other significant home buying groups, such as the 1 million documented immigrants a year, nor the other as many as 1 million undocumented immigrants; all of whom want to buy a home. That is why the average selling price of a home in the US is now $375,000, up 16% over just a year ago. This is the 10th straight year housing prices have gone up - the longest running streak on record. In the past 10 years the US saw 63 million new households. Total housing wealth in America rose to more than 82 Trillion dollars. To make things worse, new home construction remains slow. It is complicated by a lack of materials due to supply chain issues caused by the Pandemic. I am sure you have all seen the photographs of the hundreds of ships waiting off the Port of Los Angeles to unload cargo. As a result the average price for a new home in the US is now $454,000 - 20% more than an existing home. All these market forces have been made worse by low interest rates. These low rates encourage everyone to go out and buy, even though there is less and less inventory. As a result inflation is a growing concern in the US. And although we have seen interest rates rise in the last month, they still remain at historic low levels. This year we expect a further 10% decrease in the number of homes sold in America; but still a further 5% increase in home prices. The Pandemic indeed has had its greatest impact on commercial real estate. Work patterns have changed dramatically as people are now able to work from home. And working from home has not decreased productivity. The demand for large office buildings and complexes, therefore, has been greatly reduced. The value of shopping malls and large retail stores has also been affected. More and more retail shopping is being done on line. Many of these buildings are now being converted into living units or medical service centers. I hope this gives you a perspective on our market. It is within this environment that we are setting forth two major focuses in the coming year: Sustainability and Diversity. Sustainability: The impact of global warming can be clearly seen «Please know and remember that your work is vitally important to your fellow citizens, your country and yes, even to our world»