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:
“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.”
“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.”
“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.”
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.
With the leverage sellers have today, you may be able to negotiate a deal that allows you to move into your dream home!
Whether you’re a first-time buyer or a move-up buyer, don’t let the headlines scare you away from your dream of homeownership.
Today’s housing market is a big win for sellers, but these conditions won’t last forever. Let’s connect to discuss how to sell your house safely.
Working with a trusted real estate professional to navigate the process while rates are in your favor might be the best move you can make.
Growing equity can be the driver you’re looking for to fund your next move, especially if what you need in a home is changing right now.
There are so many great reasons to purchase a home, and over the past year, we’ve realized more of them than we ever thought possible.
The right agent can explain current market conditions and break down exactly what they mean for you.
It appears that some higher-priced markets may have more homes to choose from than those at lower price points.
Housing supply is at a historic low. Demand is real. Homeowners have enough equity to be able to weather a dip in home values.
As we think about the future and what we want to achieve beyond 2021, it’s a great time to look at the benefits of owning a home.