Hi! Here you go:
10 Ways to Buy and Sell Simultaneously (PDF)
(More goodies at the bottom)
Is it the Right time?
When is the housing market going to slow down?
The market is tough right now, but that question (the first one) isn't all about the market. The best decision you can make starts with what YOU need.
To investigate the housing market question is a little complicated, so I want to cover this first to keep in mind while we get in the weeds:
To make an informed and strategic decision, it's important to:
1) Identify your needs and goals.
2) Stay educated on what's happening in the market so we can make the decisions that best serve those goals.
Many people are worried about a housing market crash coming. There are wildly differing opinions on this, and some of that difference and confusion seems to come from the specific language that's used. Let's talk about the difference between a "market crash," and what is, just, supply and demand getting tighter.
There's a noticeable distinction here. For example, let's say home prices and interest rates keep going up as they have in 2022 so far. That means affordability goes down, and fewer people are able to buy homes. But that's not a crash.
Even in these circumstances with decreased affordability and crazy-low inventory, demand is still VERY high. The lack of supply is an issue, but there is no lack of eager buyers, so the market stays hot.
And while interest rates are going up, look at where they're coming FROM:
When talking about current rates rising, it's important to mention that there was plenty of room for rates to rise since they got ridiculously low the last couple of years, particularly in 2021. So even after rocketing up from last year, we're not actually seeing "abnormally" high mortgage rates yet. (As if 'normal' were a thing.)
Is this like 2008 all over again?
Right now we're seeing both similarities (high home price growth) to and also differences (no excessive credit borrowing) from the 2007 pre-crisis market.
Since the concept of a housing 'bubble' is somewhat subjective, we could even look at individual regional markets as bubbles, while others not as much. Remember when I said your best move depends on your situation? The local market you're looking to move into (or within) is a significant factor in that. Check out the national distribution of price "overvaluation" by location (darker colors are more overvalued):
Another distinction: if we choose to consider the current market a bubble, that doesn't actually guarantee a crash. While a crash is one possible path, another is a market correction.
Many experts predict home prices will continue to rise over the next few years, but at a slower rate:
So what's the bottom line?
All that said, we can never predict the future exactly, and all of these moving parts and specificity are why your strategy needs to be based around YOUR personal needs. Typically, people don't move because of rates or market patterns. They move because it's time to move.
If now is the time for you, then now is the time to make it happen – many people are doing so as we speak.
If you're an investor or looking to strategize, you'll want to stay continually educated on what's going on in the market – just remember that if you're waiting for a convenient time, you might be waiting a while.
At this moment in Spring 2022, the market seems to be making a gentle turn toward the direction of normalcy. As this year goes on prices and interest rates are generally expected to continue rising, but at more stable, moderate rates.
Again, it's important to consider your long-term goals. If you're only looking to stay in a house for a year, it may or may not be best to wait; on the other hand, real estate is ALWAYS a good investment in the long term – the question is not if, but how quickly or slowly, you will gain equity.
Want to talk about your needs and nail down exactly what your best options are? Give us a call or an email, we'd be happy to help:
(248) 429-9383
kristi@knerealty.com
More free informational stuff: