Four points to help you learn about the market and what you should do.

Is the market going to crash now that interest rates have risen? This is the question we continue to get from people trying to relate 2008 to now, wondering if now is the time to enter the market or to pull back. To help with this, we’re sharing four key points about our market and how they might help guide your real estate plans: 

1. Higher interest rates have created an affordability crisis. This has caused a reduction in buyer demand. Things are fluctuating a lot for buyers right now, as they are trying to deal with higher costs and rates but less competition. However, I am not as concerned with the change of the rate as I am with the rate of change. Quick shifts have created a ripple effect. 

2. Who is going to buy these houses? Many people believe that millennials will, but they have more debt than any other generation before them. Each generation will affect the number of buyers differently, and it is important to know where the market sits today.

“No recession is the same as the previous one.”

3. The total mortgage debt today is lower than in 2008. Also, the equity gap is substantial right now. The decrease in mortgage debt means that little changes will not make as big of an impact as they did in the past. 

4. Months of supply and seasonality make a difference. Our supply has increased a lot, which is great news. Still, pay attention to the micro-markets. In addition, this time of year normally brings a market slowdown because of kids going back to school and families wanting to settle down. 

Ultimately, remember that no recession is the same as the previous one. Anyone can help you buy or sell, but not everyone can help you prosper. That’s what we’re here for. If you have questions or want to talk about strategy for your situation, reach out through phone call or email, we’d love to hear from you.