5 things to know about the current market…
1. AN ECONOMIC RECESSION DOESN’T MEAN HOME PRICES WILL FALL
We all remember what happened in 2008, and unfortunately for many of you, the words “recession” and “housing bubble” immediately bring back memories of the crash. However, there are big differences between today’s market and the ones leading up to the crash. Before the Great Recession, the housing market had loose lending standards, an oversupply of homes, and over tapped equity. Today’s market looks the opposite with stricter lending practices, an undersupply of homes, and more equity. In fact, in four out of the last six recessions home prices still appreciated, and experts project the same for this year’s forecast.
2. HOUSING EXPERTS PROJECT CONTINUED PRICE APPRECIATION
While growing, inventory is still low overall. The number of homes for sale still isn’t meeting the strong demand from buyers. That’s why most major housing experts project ongoing home price appreciation in most markets. It will just happen at a more moderate pace moving forward.
3. WAITING TO BUY? IT MAY COST MORE $$$ THAN TIME
As the saying goes, trying to time the housing market perfectly is a bit like playing the lottery. And the truth is, with the current unpredictability of mortgage rates and experts predicting continued home price appreciation, buying a home sooner than later may be the better financial decision. Even at a more typical pace of appreciation, today’s buyers still stand to make significant equity gains as their home grows in value over the next few years.
4. THE SHIFTING MARKET IS GREAT NEWS FOR BUYERS
Should I buy a home right now? The good news is that what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. This shift in the housing market is good news for those of you with homebuying plans. Bidding wars have eased in recent months and housing supply is finally able to grow which means more options to choose from. This is great news for any of you that may have put off your buying plans the last two years because the market was too hot to handle.
5. IT‘S STILL A SELLER’S MARKET…OR IS IT?
As there’s more and more talk about the real estate market cooling off from the peak frenzy it saw during the last couple years, you may wonder what that means for anyone wanting to sell? Technically, it is still a Sellers Market on paper. Even though inventory is growing, there’s still a shortage of homes to meet buyer demand. While buyer demand is softening due to higher mortgage rates, homes that are priced right are still selling fast. Yet, the multiple offers have slowed and repair negotiations are becoming more favorable to the buyer now that they have several other choices out there with more housing supply.