How we know our real estate market is shifting and not about to crash.
Are we headed toward a market crash? People ask me that constantly. Our market is not heading for a crash, but what makes today's market different from the one we had back in 2008 (the last time it crashed)?
In 2008, people were upside down with their loans. They couldn’t afford their homes, and many had creative financing that limited their options. Tons of people stopped making payments altogether, and they lost their homes. That influx of inventory is what created the housing bubble. There weren’t enough buyers to tackle the massive supply.
What about today’s market? We’re seeing a correction, and the reason I say that is because our inventory is still low. We just came out of an abnormal market with no inventory and record-low rates, which stirred up a huge frenzy. The natural thought is that we’re headed in the opposite direction, but that’s not the case. The market is stabilizing, not crashing.
"The market is stabilizing, not crashing."
Interest rates are higher than last year, but they’re still low from a historical perspective. Inventory also remains low. We simply no longer have an abnormal market where there aren’t enough homes to go around. However, markets all across the country are currently shifting, and each one is finding its place.
Don’t buy into the market crash hoopla. Some areas will do better than others, but that’s why it’s important to hire a professional real estate agent. They can show you these differences and help you make smart real estate choices.
If you have any questions about our market or real estate in general, feel free to call or email me. I’d love to help.