Don’t Believe the Hype—Our Market Will Be Fine
Explaining why homeowners have no reason to be worried about our market.
“What in the world is going on in our real estate market?” Depending on who you get your news from, you might think that a crash is already well underway. We saw a news article just the other day with the headline, “Housing market has rare drop.” We’ve received a ton of calls and emails from scared clients recently, and most of them are confused about what to do. We’re here to tell you to take a deep breath. Our market is changing, but we aren’t heading for a crash like we were in 2007.
It’s true that an economic recession might be coming, and the real estate market has slowed down a little bit. On top of that, more and more homes are coming onto the market. When people learn about this, they immediately think of the great recession and the housing crisis of 2007 and 2008. However, that time was an anomaly in many ways. The truth is that homeowners don’t have much reason to be afraid.
Look at it this way: prices may drop slightly, which isn’t great news, but you have to live somewhere — it’s not like you are going to sell your home to live in a tent in the woods. Also, prices appreciated like crazy during the last two years. If you owned your home before the pandemic started, chances are that you have a ton of equity.
"Our market is nothing like 2007."
Price drops or stabilization may be coming, but it’s not as bad as it sounds. Prices are still up year over year by more than 20%. Some people are worried about the long-term impact of higher interest rates, but rates are still good for investors. We’ve also been helping our buyers use creative methods to lower their rates, such as buying mortgage points.
The only people who might be affected by this shift are those who bought their homes in the last three or four months. However, most of these people weren’t planning on living in their homes for six months and selling for a profit. They’ll instead live in their homes for five or more years. When prices begin to rise again (and they will), they’ll build plenty of equity just like everyone else.
We do a lot of crazy things when we’re afraid and don’t know what’s happening. Yes, prices may go down, demand will likely fall, and supply is increasing. However, let’s take a deeper look at our situation. The market was crazy-hot before. Prices were increasing lightning-fast, demand was as high as we’ve ever seen it, and supply was historically low. We probably aren’t heading for a crash; instead, we’re just returning to a more balanced market.
If you have questions about our changing market or anything else, please call or email us. We’ll calm your fears and make sure you’re informed about our market. We look forward to hearing from you!