Market Update: Is the Market Crashing?

Inflation, interest rates, foreclosures, OH NO! The media is doing a great job scaring everyone and we are still feeling the affects of the last recession 2008-2012. Based on 19 years experience and surviving the great recession, this coming downturn will be different and we are staying optimistic. Inventory is up 12% from this time last year, but we only have 8,123 homes for the whole metro area. This means buyers have choices, so home prices need to adjust back to a normal price range. We are starting to see “30 day lates” on mortgages start to increase, but it doesn’t necessarily mean they will go into foreclosure. Most people have equity in their homes so they can still sell their homes for a profit. We may see an increase in inventory, which is good for buyers, but I doubt we will see the big discounts we saw in 2008. Interest rates have stayed so low so for so long, only us dinosaurs remember buying our first home for 9-12% interest rates. I was thrilled when we refinanced at 7%! We may need to start considering adjustable rate mortgages (ARM) where you can get into a home for a low interest rate and ride out the next 5-7 years before the interest rate on the loan adjusts up. Sellers can still expect strong home prices if their home is priced according to its condition, not according to last year's prices. If you have questions about the market, don't look at the media, talk to a professional. We are here to answer any and all questions you have!