A housing shortage, falling interest rates and still, sluggish growth. When can we expect the real estate market to shake off this anomaly?
There are those who believe they know the causes. They sight, inflation and high living costs, concerns about the broader economy and expectation of further price declines (the old “wait-and-see” approach) as the culprits. Taken together, that sure seems to scream “caution up ahead”.
Is this the case?
For folks on the cusp of home ownership, people who have accepted the increased burden associated with buying a home; the prospect of lower home prices and declining financing costs should point the way toward lower living costs. Especially as rents remain high.
Inflation appears to be finally under control. Concerns about the broader economy may be overblown. Remember that after the horrific economic crash of 2007-08 the housing market sprung back to life in short order with real estate prices continuing to rise despite substantial increases in the years prior.
So where are the buyers who see opportunity in lower prices? Those willing to ride the variable rate train as interest rates fall? What about the buyers who recognise that prices have dropped so considerably that only a prophet would wait for the bottom lest they miss the opportunity. Where are they?
Unlike the prolonged decline in the 1990s; the frequency of real estate market overexuberance and price corrections after YTK (2007, 2017, 2022 and 2023) may have taken a toll on consumers despite the general upward trend in prices.
Caution may now be the overriding sentiment. With the “wait and see” approach dominating family discussions about home ownership.
Are you wondering what to do in this year’s real estate market?
My advice, and I know you may feel I’m biased, is as follows. After 20 plus years of multiple offers and unceasingly having to bid over asking, buyers should cherish this lull. Buying a home in the recent past was fraught with disappointment and uncertainty. In many cases it was quite unpleasant. And it will happen again.
If you are considering buying, selling or would just like some advice on what is happening in this year’s real estate market please let me know. I am always available to chat and I am happy to help!