From the headlines to the coffee bar lines The ‘State Of Housing Market‘ is the topic of conversation. With the Meltdown of 2008 still fresh in everyone’s mind the conversation is valid.
While we don’t have a crystal ball, in our 30 years as Real Estate Agents we make it our business to stay up-to-date with the macro forces behind our business.
The common denominator is YES we will probably have a recession in the future but the facts are that 6 out of the last 7 recessions home prices were greater at the end of the recession than they were before. Second, back before the last crash, the demand was artificial as it was propped up by very unrealistic lenient lending terms. Today’s buyer demand is really driven by low unemployment and still historically low interest rates.
The BIG run may be over but from these facts, we don’t see us falling over the cliff anytime soon. Those buyers that wait are sure to pay higher rents in the coming years and will certainly be facing higher interest rates by putting off a home purchase. Both of these facts bode well for sellers.
The question sellers ask me is should they sell now vs. wait? While I don’t see huge danger ahead, I’ve always advised my clients to make decisions based on their goals and motivations in life, and not by trying to time the market. It’s the same advice financial advisors give to their clients. Lastly from a market perspective, in the history of Real Estate, no one has lost home value in a 10 year period.