Here’s what you need to know about our shifting housing market.
What the heck is going on with our housing market? If you’ve been paying attention to the news, you’ve probably heard a lot of doom and gloom about the future of our market. Why is everyone so worried, and are things actually so bad? Today we want to explain what’s happening and discuss what it means for buyers.
The main reason our market is shifting is rising interest rates. Around Christmas, rates were at 3%. Current rates are closer to 6%. They’ve nearly doubled, but in our opinion, it was bound to happen. Our old interest rates were historically low. It wasn’t sustainable for them to remain that way forever.
"Prices aren’t falling anytime soon."
Rates are likely to increase throughout 2022. Because of this, many buyers are wondering if they should just sit out of the market and wait for things to change. According to every expert we’ve spoken with, this may not be a good idea. Housing prices aren’t going down anytime soon. Prices right now are probably as low as they’ll ever be again, so now is the time to buy if you’re considering it.
We can already tell some buyers are skeptical that prices will continue to rise in the near future. Some think that we’re on the verge of another housing market crash just like in 2008. However, our market couldn’t be more different from that one. The last crash was caused by loose lending practices that just aren’t present in our market. That market was also flooded with inventory, so as soon as demand fell a little bit, prices plummeted. As long as inventory remains as low as it currently is, prices won’t fall.
If you have questions about today’s topic or anything else, please call or email us. We are always willing to help!
