Calm Down! The Real Estate Market is NOT Falling Apart
There has been tremendous volatility in certain markets over the last few weeks (for example, the stock and currency markets). When this happens, some tend to lump all of their investments together and create an almost ‘Armageddon’ scenario where everything loses value quickly and dramatically. Real estate is an investment that can get caught up in this hysteria. Does the concern about the current housing market have merit?
Financial advisors have been warning us for months that the stock market was ripe for a “correction.”
Experts have been questioning the value of alternative currencies for over a year.
In contrast, here are the opinions of three major players in the residential housing market:
Ralph DeFranco, Chief Economist, Arch Capital Services Inc.
“It’s premature to worry about a housing bubble. The typical warning signs – excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and/or poor affordability compared to the past, and a high number of internet searches on house flipping – are not present.”
Liu-Down, Genworth Chief Economist
“My thoughts on many recent discussions of ‘housing bubble’ – the bar for a housing bubble is higher than just prices being above some fundamental value. There must be widespread behavior change as well such as higher levels of fraud and speculation.”
Fitch Report
“US home prices are on track for a 5% nominal gain for the 4th consecutive year, returning national prices to their highest level since 2007. The growth has been driven by historically low mortgage rates and unemployment plus solid population and personal income growth rates…a meaningful correction should only be triggered by an unexpected economic shock.”
Bottom Line
Speculation has driven certain markets over the last year. However, it has not been speculation, but instead people’s desire for homeownership, that has driven the real estate market.
To view original article, visit Keeping Current Matters.
Struggling To Sell Your House? Read This.
If you’re having trouble getting your house sold, here are the top three hurdles and how an expert agent can help you solve these issues.
Only an Expert Agent Can Give You an Accurate Value of Your Home
Agents have a deep understanding of the local market, and they can provide insights that automated tools simply can’t match.
What Will It Take for Prices To Come Down?
It’s crucial to work with a local real estate expert who understands your market and can explain what’s going on where you live.
Why More Sellers Are Hiring Real Estate Agents
Selling your home is a big deal, and while FSBO might seem like a way to save time or money, it comes with a lot of responsibilities.
Why Owning a Home Is Worth It in the Long Run
Increased home values are a major reason so many homeowners are still happy with their decision today!
Sell Your House During the Winter Sweet Spot
While inventory is higher this year than the last few winters, if you work with an agent to list now, it’ll still be in this year’s sweet spot.
Should You Sell Your House As-Is or Make Repairs?
So, how do you make sure you’re making the right decision for your move? The key is working with a pro.
How Co-Buying a Home Helps with Affordability Today
If you are an aspiring homeowner, buying a home with your family or friends could be an option.
Why Today’s Mortgage Debt Isn’t a Sign of a Housing Market Crash
Most homeowners today are employed and have low-interest mortgages they can afford, so they are able to make payments.
What’s Behind Today’s Mortgage Rate Volatility?
The best way to navigate this landscape is to have a team of real estate experts by your side.