Demand and sales are headed back to pre-pandemic levels, which were some of the strongest in recent history. But, the shift has caused a great deal of confusion and uncertainty.
Is the housing market going to crash?
Headlines right now scare consumers that the “boom is over” and the economy is slowing down. To really understand what’s happening with real estate today, it’s important to lean on the experts for reliable information. Experts say the housing market isn’t in a bubble, and we’re not heading for a crash.
What’s happening with mortgage rates, now and in the future?
Rising mortgage rates are no doubt one of the biggest factors impacting the housing market right now. But it’s important to remember that the low rates of the last few years were an anomaly. As inflation rises and mortgage rates climb, many may see their purchasing power shrink and their dream of homeownership fade. However, it’s important to remember one big piece of economic wisdom: there is no better hedge against inflation than homeownership.
A home is a tangible asset that typically holds or grows in value. In most decades, home prices have outperformed inflation.
If the economy slows further, what does that mean for real estate?
Post-2009, nothing will strike fear into the hearts of buyers and sellers like the word “recession.” But as the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one really knows exactly what the future holds, one thing will forever remain the same: people will always need a place to call home.
Historically, each time the economy slowed down, mortgage rates decreased. And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.
What will happen the second half of this year?
Yes, we are seeing a slowdown. However, we are really just heading back toward the market pace we saw pre-pandemic, and those were still great years for real estate. Focus on the big picture, and that’s this: the housing market is still very strong, and previous projections are already outperforming what industry experts forecasted earlier this year.
Wondering if you should buy a home today? Experts say home prices will continue to appreciate in the coming years. If you buy now, you’ll best those future increases. And once you do own the home, any price appreciation that occurs will grow your home’s value and your net worth.
Should I wait to buy a home?
This is probably one of the biggest questions you’re getting asked right now, and it’s never been more important to have a good answer for it. Even though purchasing a home today may not be as easy as it was a couple of years ago, the latest data shows that inventory levels are rising, which means more moderate price appreciation and more options for buyers.
Bottom Line
Wondering if you should buy a home today? Experts say home prices will continue to appreciate in the coming years. If you buy now, you’ll best those future increases. And once you do own the home, any price appreciation that occurs will grow your home’s value and your net worth. Contact us today if you’re ready to invest in homeownership.
