Home prices are falling, but it isn’t as bad as you might think.

“How long will this dip in prices last?” We’re being asked this question almost every day by our clients. 

The truth is that this price dip is based on a few market factors. For instance, if the recession is difficult and mortgage rates come back down into the 3% range, we could see another buying frenzy that could push prices right back up to where they were. 

Another important thing to remember is that just because rates went up, the structural housing shortage that began in the late 2000s has not gone away. After the last recession, we stopped building enough houses—according to some estimates, we were short about 5 million new homes a year. That's a big number, and it's not going away overnight. When buyers gain more certainty, or get comfortable with a tolerable level of uncertainty, they could start buying again and push prices up due to demand outpacing supply.

Why are we telling you all this today? There's an opportunity in these uncertain times. When others are paralyzed, you could win big if you understand how long the downturn will last. 

"Buyers will have many opportunities if they are prepared."

Do you act now or do you wait it out? That's the big question, but we can help you by presenting you with all your options. You have a lot more options than you might think. Next, we'll research the properties that interest you, and create a plan that is best for you and your family.

If you're a buyer, we have some big ideas for you to consider. Are you familiar with the concept of “buying the dip?” That's typically a stock market concept, but it may apply in this housing market. We believe there'll be an opportunity for those who are prepared for it. If you act fast, you could get a leg up over the competition. 

Remember those fairytale days of just a year or two ago, when rates were around 2.5%? For some, there may be one more chance to live that dream. It has created uncertainty. We study this market very carefully, and we're confident that we can help you with what we’ve learned.

If you have questions about today’s topic or anything else, please call or email me. My team is always willing to help.