Here’s what you should keep in mind about the recent changes in our market.
There’s been a lot going on in our real estate market, and many are predicting that things will begin changing soon. There’s been a lot of talk about interest rates, housing bubbles, and more, so today I’ll be talking to you about what’s actually going on with our market and what the future may hold.
First of all, some people believe we’re in a housing bubble that’s going to burst, but there are a few reasons why we feel this isn’t the case. Back in 2008, inventory was much higher than it is now. Back then, it didn’t make sense to have high prices and high inventory; high prices make sense now since inventory is low and there’s a ton of competition. Today’s demand is also real; back then, a lot of the demand was simply speculation.
Additionally, equity is high—many people completely own their homes. Even further, I’ve heard the average U.S. homeowner has $200,000 of equity or more. People are in strong equity positions instead of being upside-down on their mortgages like they were in 2008.
Moving on to interest rates, we know the Fed has been working to keep rates low. Over the last few weeks, however, we’ve seen some light upward pressure on these rates. There’s been positivity with our economy, especially now that vaccines are rolling out, and the Fed may begin working to curb inflationary pressure. If they do this, we may see interest rates increase and impact the market.
If you’ve been thinking about buying a home within the next few months, it’d be best to start looking sooner rather than later. Because of rising interest rates, low inventory, and fierce competition, starting your search now is important for securing a home.
I know I covered a lot of topics today, so if you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.
