The market has shifted, and that comes with uncertainty. For the last 14 years, when the market has been up and down, I’ve been helping buyers and sellers achieve their goals. Now is the time to work with an agent that has seen it before.
So let’s talk about the Top 5 questions on everyone’s mind about today’s real estate market.
Is the housing market going to crash?
Wondering what a potential recession means for the housing market? Know that an economic slowdown does not equal a housing crisis. In 4 of the last 6 U.S. recessions, home prices increased. Also, housing inventory remains low due to demographic shifts and underbuilding. When supply is low, demand keeps prices high.
What’s happening with mortgage rates?
Mortgage rates are undoubtedly one of the biggest factors impacting the housing market. But the low rates of the last few years were an anomaly. While an economic slowdown needs to happen to help taper inflation, it is not always bad for the housing market. Throughout history, interest rates go up at the beginning of the recession and then are lowered to stimulate the economy moving forward.
What does inflation mean for real estate?
Buyers may see their purchasing power shrink as inflation rises and mortgage rates climb. However, homeownership is still an excellent hedge against inflation. A home is a tangible asset that typically holds or grows in value. In most decades, home prices have outperformed inflation.
What will happen the second half of this year?
What looks like a slowdown is really just the market heading back toward pre-pandemic levels. Two years of a red-hot market may make us feel like the market is in a precarious drop, but the reality is it’s headed into a more balanced period which should be more stable and predictable.
Should I wait to buy a home?
This may actually be the best time to buy! Increasing inventory gives buyers more choices, and softening demand means fewer bidding wars. Experts predict that home values will continue to appreciate, allowing today’s buyers to build wealth.
If now is your time to buy or sell a home, Let’s connect! That’s the experience that will move you.