Let us address the elephant in the room... Are we headed for another Real Estate Market Crash?
I haven’t met someone successfully predict the exact future, but here are a few reasons to explain why market is the way it is currently, and why experts believe another house crash like 2007 isn’t in our future.
Inventory is still at a record low, so you have supply and demand being a huge factor in today’s market, as well as not allowing prices to crash anywhere in the near future.
Home builders are not overbuilding like they did in the early 2000s. While they are building as fast as they can, the saying is “Rome wasn’t built in one day”, it cannot happen overnight and keeping up with the supply and demand factor as well.
Mortgage rates are STILL at a record low. Even while rising slightly over the past few weeks, home buyers are able to qualify and afford housing much easier.
Lending standards have changed. There are laws and practices now requiring documented income unlike before.
Foreclosures are still in a record low. There isn’t a flood of homes at decreased prices which effects home values in your neighborhood. In reality, most homeowners have quite a bit of equity in their home.
You may be the person wishing the market will crash and you will be able to get a home for a fraction of its value, but it isn’t likely to happen. While the market is leveling off for home prices, interest rates will still slowly increase over the next year and are expecting to reach 4% by the end of 2022. Instead of waiting for a crash that isn’t likely to happen, take advantage of the lower interest rates that are still available to you, saving you THOUSANDS of dollars over the life of your loan, as well as a cheaper monthly payment.
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