Real Estate Market Today isn’t Scary
There’s nothing scary about this real estate market!
Recent news headlines have been filled with stories of skyrocketing interest rates, bidding wars, and talk about a housing bubble bursting.
It’s easy to be spooked by those headlines, but I tell all of my clients to remember that the market is complex and there are always opportunities to be found in every market.
Here are three reasons to have no fear if you’re buying or selling this fall:
1) Mortgage rates are still historically low.
Yes, they’ve increased in the past year, but they are still comparatively low. Rates in the United States averaged 7.74% from 1971 until 2023, reaching an all time high of 18.63% in October of 1981 and a record low of 2.65% in January of 2021. Buyers who purchase now can begin building equity and refinance if and when rates dip.
2) Opportunities for investors.
In times of economic uncertainty, people may choose to rent rather than buy, which can create opportunities for real estate investors in the rental market.
If you’ve been looking to diversify your investment portfolio, there are a lot of options in real estate right now — residential properties, commercial real estate, vacation rentals, or even real estate investment trusts (REITs). With careful research and guidance from your real estate agent, loan officer and financial professional, you can identify opportunities that align with your long-term goals.
3) Housing will always be a fundamental need.
Regardless of market conditions, housing remains a fundamental need for individuals and families.
Housing demand is driven by population growth, changes in household composition, and economic growth. There will always be people who need to move, even if the market does tend to be cyclical.
DM me if you’re interested in setting up coffee date to chat about your goals. No pressure, no strings attached!