No one can argue that over the past 2+ years, most homeowners have gained a significant amount of equity gains on their homes … and if you have lived in your home for much longer – you most likely will have more equity then you could have imagined.
Let me preface first by saying I am SO not the “look at the glass half empty” person – quite the absolute contrary!!! But we are where we are – higher inflation, higher mortgage rates, gas, food … I shall not go on … you get the picture!! We are ALL living the same dream!
Many now are wondering … “Are we in a housing bubble?” Experts say no. The dynamics of today’s market are very different than they were in 2007-2009. Most housing experts are predicting the market to remain strong for a while for several reasons, and here are just a few … Millennial’s demand for housing is high, with Gen Z right behind; supply cannot keep up with demand – which is truly the driving force of home prices; and lastly, borrowers are less likely to default on their mortgages as their lending standards are tighter and, new regulations have been put in place due to the lessons learned from the last crisis. But with the rise in mortgage rates, some buyers are finding that they are having to adjust their home budget, and for some buyers the higher mortgage rates have just priced them out of the market all together. Interest rates have almost doubled over the last 6 months but keeping this in perspective as we had experienced unprecedented low interest rates over the last couple of years. I always counsel my buyers to look at their monthly payment rather then get too caught up on the interest rate. There are still many buyers out there waiting for the right property to come on the market in the hopes of them securing … their own place to call “Home”. With the above in mind, experts are saying that they see the market leveling off …prices are not going down but will experience slower price growth then what we have seen over the last 2 years. Sellers should anticipate seeing a more “normal market” looking forward with housing prices leveling off. Having said that … I think some sellers will need to adjust their way of thinking to reflect “today’s market” and not the crazed market of 2020-2021. I think the tides are changing in that regard.
Many buyers and sellers also wonder… and understandably so – where are we today, and what lies ahead, when considering selling or buying a home. For those of you who know me, you know what I will always say … “we only know what we know today” right?
So, I will close by saying this … falling short of that crystal ball …. the best advice I can give to you right now, is to speak to an experienced Real Estate Advisor – that would be me, if you are considering buying or selling your home. We can discuss in more detail what your real estate goals are, and how best to achieve them. Your decisions should not only be dictated by the market, but it is also knowing and understanding your own personal wants and needs as there are many moving parts to this decision.
If you are interested to learn what your home’s equity value is as of today, I would be happy to prepare a complimentary Comparable Market Analysis (CMA) for you, so you have that understanding. This information could be very helpful in determining your “next move.”
If you have been thinking of buying or selling your home, reach out to me. We will discuss in more detail what your real estate goals are, and how best to achieve them.
Call me today, I am here to help!!
Laura
Helping buyers & sellers achieve their real estate goals
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