The State of the Market

Today’s housing market has been anything but… fun? Fair? Exciting? Fulfilling? As of late. Really, choose your adjective and you’re likely to find someone who will agree with you. Rates are high and climbing, inventory is low, and morale is even lower. Being so down in the dumps about the market has us believing all kinds of myths, myths that most experts are saying aren’t true. 

Such As… 

The Crash of ‘08

Those of us that lived through (and made real estate transactions) throughout the real estate bubble burst of 2008, might find ourselves saying that prices will go down again just like they did 15 years ago. You might even be saying that with an air of hopefulness. That, however, is not the case. While it’s not always easy to identify a bubble while you’re in one, the fact of the matter is that today’s circumstances vary wildly from the economy of 2008. Back then, new construction was booming and to find buyers, lenders were offering subprime mortgages or loans with zero money down. It was unsustainable and the market collapse ushered in a crippling recession and record setting job losses. 

A crash of that magnitude is not something that should be hoped for in the name of cheaper housing costs. Plus, not only are today’s lenders extremely judicious as to whom they grant a mortgage but current homeowners are much more likely to have equity in their homes right now. 

Staying Put

Another rumor being spread is that those with “those pandemic rates” won’t ever sell because their rate is just too good to give up. When mortgage interest rates dropped into the twos during the height of the Covid-19 pandemic, lots of people purchased for the first-time or refinanced to a lower rate. Looking at today’s rates hovering near 7%, some might feel that listing their home and giving up a 2.5% interest rate is like giving up gold. Why even bother? That’s not entirely true. 

Buyers and sellers currently on the market are there because they have to be, rate or not. Sometimes life events just happen that necessitate a move that cannot be avoided. Despite lower inventory year-over-year, don’t lose hope that someone with a lower interest rate will simply never move again. Homes WILL come on the market again!