Our Shifting Real Estate Market Has Perks for Both Homebuyers & Sellers
Hey folks, no news flash here we all know the housing market has shifted. Rising interest rates, inflation, stock market volatility and overall economic uncertainty has either priced many buyers out of the market or curtailed demand. The result is longer market time, less aggressive offers, and even price reductions. Recent headlines about the housing market are contributing to a sense of dread and sensationally breeding panic and uncertainty which make it hard for anyone to make decisions!
So, are you a glass half empty or half full kind of person? Do you see the storm clouds or the silver lining?
Despite all the negative market forces now is actually a great time to be a buyer. We have more supply and less competition! Tour and open house traffic is down, and sellers are motivated. We’ve known this change would come as the rapid price growth coupled with rising interest rates was eventually going to impact affordability - and it has. But we are not in a bubble or spiraling toward another crash. Simply put, 2008 was spurred by a combination of oversupply and predatory lending.
Today, while mortgage guidelines have been improved, we STILL lack adequate supply. As a result, experts predict price appreciation will slow but the housing market is unlikely to crash. Our area - which saw several months of sustained double digit price growth – didn’t make Fortune’s recent list of the FORTY markets most likely to see home prices fall. Nor did it make Business Insider’s list of the topmost overpriced housing markets.
The reality is that our economic base, driven by tech employers, remains strong. Amazon, google, Facebook & Microsoft are still hiring, bringing more people to our area which will increase in demand for housing. Right now, the market is trying to find its footing, its “new normal” as buyers get used to the higher rates and the stock market volatility settles. Even economists agree that real estate continues to be a good hedge against inflation and prices will continue to appreciate though at a less aggressive pace.
Sellers, even though the tide is turning, don’t fear this shift. Preparing your home for its debut and appropriately pricing it is critical in any market, but perhaps more so now that there is an uptick in supply – your home needs to stand out - though may have less competition and take longer to sell. Me? I see a silver lining in the clouds and am happy to further discuss your home buying or selling needs and how to be successful in any market, even this one.
As your trusted advisor, please let me know how I can help you understand and successfully navigate the current market to help you achieve your real estate goals.
Call/text or email me anytime! ginam@windermere.com.
