A note from agent Kristen King:
 
This article below spoke to be in such a strong way. It is loud and clear on why we don’t need to panic over this current market.  Every day it seems recently someone in my life has expressed discouraging thoughts to me regarding the state of the Real Estate Market right now.
I believe this article will enlighten you as to why we do not need to fear a housing bubble, and said it better than I could.  Please take a minute to read.
 
God Bless,

Kristen King

 

 
 
 
“Calm Clients’ Housing Bubble Fears”
by Melissa Dittmann Tracey, REALTOR magazine
Fall 2022, http://WWW.MAGAZINE.REALTOR
 
 
“Earlier this year, about 45% of home sellers said they believe the housing market was headed for a crash in 2022, according to a study from Clever Rea Estate.  Google Trends data shows a significant spoke in searches for the phrase “housing bubble.”  Doomsday fears are brewing as consumers get nervous that the market may have overheated.
 
Don’t dismiss fears.  Consumers may have seen their home or patents’ home dip drastically in value during the Great Recession, which justifies their concerns and questions.  But this isn’t housing bubble 2.0.  “The country is still facing historically low inventory levels and low rental vacancy rates that are the consequences of multiple years of underproduction,” says Lawrence Yun, chief economist of the National Association of REALTORS.
calm market no fear real estate agent
Here are the facts to quell clients’ fears:
 
~ Mortgages are structured differently today.  Compared with before the Great Recession, lenders are much stricter about whom they’ll lend to, with higher credit-score and ability-to-pay requirements.
 
~ Housing inventories remain low.  The nation is roughly 3 million homes short of meeting buyer demand, Freddie Mac estimates.
 
~ Buyer demand remains high.  Homeownership is a top goal.  In a Grand Canyon University survey, postgraduate students ranking it above having a successful job, marriage or even a baby.
 
~ Real estate can be a hedge against inflation.  A fixed-rate mortgage locks in a homeowner’s monthly mortgage payment and keeps it steady against any future rate hikes.  Also, homeowners stand to gain over the long run:  Homeowners who buy and hold for at least 10 years have a 93% chance of selling their home for more than what they originally paid.
 
~ A market correction is not the same as a crash.  Some markets may experience a slight decrease in home prices as the market readjusts from recent, rapid record highs, Yun notes.”
 
 
 

Let me help make your next move, your BEST move!

Remain joyful and keep smiling!

– Kristen King

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