The Real Facts About What's Going On In The Housing Market
Unless you're living under a rock, I'm sure you've seen the headlines recently... "Abrupt Slowdown", "Will Housing Prices Drop?", "Big Bank Turmoil", and more. So I'm here to help shed some light on what is ACTUALLY happening in the housing market.
Despite what the big news outlets say, we are not headed towards another '08 housing market "crash". This is mainly due to the lack of inventory, high buyer demand, and the fact that most homeowners are sitting on a lot of equity — and that equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. Is the market shifting? Yes, the housing market is ever-changing, which is why it's important to work with an agent who stays up-to-date on market trends and changes, whether you're looking to buy or sell.
Read on to learn more about what is really happening in our local market, and why we aren't headed for another "crash" anytime soon.
→There have been a lot of shifts in the housing market recently.
→Mortgage rates rose dramatically last year, impacting many buyers' purchasing power. Home prices which had been rising rapidly for several years, finally reached their peak last summer. These changes led to a rise in headlines saying prices would end up crashing.
→Despite the turmoil and volatility, we have been seeing in the financial markets, real estate experts don't believe the housing market is headed for another crash.
→There are far more people looking for homes than there are houses available — a dilemma that will continue to keep home prices high as buyers compete over a limited supply.
→Until that equation reverses (the way it did during the housing bubble burst in the 2000s), we will continue to see upward pressure on home prices.
→And Sellers are under no pressure to move since they have plenty of equity right now, also lowering the chances of foreclosures and short sales.
→The supply-and-demand equation simply won’t allow a price crash in the near future. Will we see a slump eventually? Yes... the housing market doesn't go in one direction forever. We may just not see it anytime in the near future.
The industry is always moving and changing. Look for an agent who can navigate this market and help make the experience seamless and enjoyable.
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