The Market Is Slowing Down, Not Crashing
Stats for our current market and what they mean for buyers and sellers.
Is the real estate market crashing or is it slowing down? We are getting these question a ton lately, so we want to address the answer.
We are not expecting to see any big crash like we did in 2008. Our market is not crashing; it is just slowing down. One reason for this is that interest rates have increased, so many people are waiting for the rates to decrease again.
Along with this decrease in buyer demand, inventory is increasing in both new construction and resale homes. This combination means that sellers should not expect multiple offers like they were able to get in the past, and their homes may not sell for list price.
"We aren’t headed for a crash, just a slow-down."
Another factor to pay attention to during these changes is value. It is critical that you know the actual value of your home. In most areas, home values were up around 34% in the last two years. In contrast, normal appreciation in our area is around 3%, so this is a big difference! Therefore, get in touch with someone who knows the value of homes, because the last thing you want to do is overpay for a property.
Overall, it is still a great time to buy or sell a home. We aren’t headed for a crash, just a slow-down. During these changes, just make sure to work with someone who knows the market. If you are ready to buy or sell a home, or if you have any questions, reach out to us today through phone call or email. We look forward to hearing from you!