With housing values soaring like they did prior to the Great Recession coupled with recent inflation news, many are calling for a correction in housing or as it has been referred to as A CRASH!
A Look Back: Home prices were surging from 2000 through 2006. Homeowners were sitting back in their recliners watching their home value skyrocket to the heavens. It seemed like the housing market was unstoppable. Then it all came tumbling down with the beginning of the subprime meltdown in March 2007. Values dropped like a rock. Many lost their homes to foreclosure or short sale. Everybody remembers the scars of the Great Recession. Either they were directly affected, or it happened to somebody they knew.
Today’s Market: Once again, housing is soaring upward with seemingly no end in sight. Buyers are tripping over each other, willing to pay tens of thousands of dollars above the asking price. Throw in the news of rising inflation and the potential of drastically higher mortgage rates, the madness must come to a screeching halt soon, right? Even though so many are anticipating and reporting that a housing crash is imminent, the likelihood of it happening is extremely low to negligible for the foreseeable future.
Inventory: The current active inventory dropped by 1% in the past couple of weeks to its second-lowest level since tracking.
Buyer Demand: Demand will most likely peak for the year sometime this month as it typically does during the Spring Market. It will remain elevated due to the incredible velocity of the market, but it will slightly downshift as housing transitions to the Summer Market. The distractions of summer, from the beach to family vacations, will be magnified this year due to coming out of the pandemic.
BOTTOM LINE: With inventory low, demand still high and mortgage rates at record low levels, we agree that it is still a very opportunistic time to sell and buy real estate. Our team understands these market dynamics and can help you navigate successfully throughout the home buying and selling process. If you are interested in how this current market impacts your real estate investment goals, let’s connect!