Welcome to the summer – and all the fun associated with it! What does summer mean to you? Trips to the beach? Lazy days at the pool? Cookouts with family and friends? Baseball games? How about amusement parks?
In our current world of real estate, we are at an amusement park and rollercoaster rides are what we are experiencing. We’re facing the ups and downs and twists and turns of the most exciting ride at the park. Now, more than ever, you need to have an agent with experience and knowledge to help you navigate the roller coaster of real estate. We’ve seen some houses sell with multiple offers in just a few days, and other houses sitting on the market with very few showings in weeks. We have a high demand for housing and growing – albeit slowly – inventory levels. Interest rates are up and down regularly, yet they are still at fantastic historical levels.
The rates of the past are the rates of the past. They were artificially low and could not stay that way for an extended period. Even though current rates are higher than where they were, they WILL come down as we enter a recession. The good news for real estate is that in recessionary times, real estate has fared well, with only the Great Recession negatively affecting home values.
The reason for that decline in home values was the exotic home loans and the fallout as a result of them. We are not in the same situation today.
Homeowners have equity today versus the Great Recession, when many people had negative equity the day they bought the house. As a matter of fact, of people in foreclosure today, 90% have positive equity and 25% of those in foreclosure have 50% positive equity or greater.
So, what does all this mean if you are a seller or a buyer in today’s market? Sellers need to be realistic with their pricing and have patience, as it may take time for your house to sell. The good news is that your home will sell as we DO have demand. Even though inflation and rates are up, buyers are out there. If you are a buyer, you may need to be competitive or you may not be able to negotiate like “the old days”. In any scenario you find yourself in, we should speak more specifically about your situation. I am here to help, so give me a call.
Happy Summer and stay cool!