Housing Market Update

While the housing market has been hitting new records over the last year, many economists and real estate experts are wondering when things will start to cool off again. There are understandably many fears that the market will crash, as it did in 2008 which ultimately was followed by the Great Recession. 

If you similarly are fearing this market crash, then stick with us in this piece as we break down some of the forecasts of the coming year and analyze the many factors that have gone into this historic time for real estate……….

…….So what should we expect? 

Top economists and housing experts don’t necessarily think that this housing market will lead to the same economic collapse that came in 2008. The key takeaway here, is that the demand that is increasing housing prices is real, not artificially produced like it was 15 years ago. This time, families, newly remote workers, and even companies that are relocating to lower tax and regulation states are fueling the increased pricing. 

The more immediate concern with the housing market is this increased pricing which has largely priced out lower and middle income earners as well as first-time home buyers. Real estate experts like Marr, say that prices will eventually have to taper out: “Even when the fundamentals are sustainable like they are now. Strong increases in mortgage rates, which are likely coming soon, will inevitably cool home appreciation and bring prices back in line with wage.” 

So, there’s some good news on the horizon for all of you home buyers out there! We just have to hang in there and ride out the wave. With little fear of another market crash, now’s the time to be getting all of your ‘ducks in a row’ so that once a property comes on the market, you are ready to move fast! 

Reach out to us today to see how (Company) can meet your real estate investment lending needs and get ahead of this inevitable ‘cooling down’ of the market.