Three Takeaways of the Emerging Real Estate Market
The last five or more years in real estate have been crazy to say the least. Prices over that time have increased dramatically and by all accounts we have been in a pure Seller’s Market for much of that time. It hasn’t been unusual to see homes selling sometimes tens of thousands of dollars over the list price, offers being one of 20 or more submitted all at one time, cash and conventional buyers ruling the roost in terms of who wins out, and many buyers resorting to forgoing inspections to land the deal.
What’s even crazier is that those days may be coming to an end!
Record inflation has led the Fed to raise interest rates causing mortgage rates to rise dramatically. Rates that were in the low 3’s and high 2’s earlier this year are now in the 6’s. With the second quarter GDP numbers coming out last week, we are also now officially in a recession.
What does all this mean for you and your home buying and selling needs? Here are three takeaways of the emerging real estate market:
- Don’t expect prices to fall anytime soon.
Although rates are higher and overall sales of homes may begin to decline slightly in the short term, prices are expected to hold. Millennials are the largest buying demographic right now and demand is still very strong. Prices may level off, but most real estate experts we trust believe prices will at least hold.
2. Mortgage rates could hit 10%.
Some are predicting, perhaps hoping, rates don’t go this high, but the amount of inflation we are seeing right now is going to take a lot of action by the Fed to reign in spending. This is going to make buyers think long and hard about pulling the trigger on buying a home. Again, with strong demand, I don’t see this crippling the market. But it is certainly going to give buyers pause. SELLERS and POTENTIAL SELLERS, if you have been hesitant to move forward with listing your house to see where this market lands, now is the time take action. Cyclically speaking, our market generally goes strong through Thanksgiving. There is still time get things moving and get that house listed and sold for a good price before the holidays.
3. We will start to see homes sit on the market for longer periods of time before selling.
Those higher rates giving buyers pause will change the dynamic of how homes have been selling the last couple of years. Where homes have been selling in a day if not hours, don’t be surprised to see homes start to sit on the market for days, weeks, maybe months. We are already starting to see this. Keep in mind that in a normal market, homes traditionally sit on the market for an average of 60-90 days. So 30 days on market is still historically speaking a quick sale.
Fear not! Although changes are happening, real estate is not expected to take the nose dive it did back in 2008. Sellers, you are still going to be able to take advantage of the equity gains you’ve made on your home the last several years. Buyers, although rates are on the way up, there are silver linings. You are going to be able to take advantage of the equity you’ve gained if you’ve recently sold your home and when rates do eventually start to decline, as they always do, you will always be able to refinance your home into a more comfortable rate in the future.
Want to learn more about the local market? CLICK HERE to read our most recent market update from June.
Family and friends, if you have been on the fence about a purchase or sale, please don’t wait any longer. Call or text me at 260-579-1516 or send me an email at mike@mikearchbold.com today!
Why Does RE/MAX Results Stand Out Among the Competition?
Simply put: Relationships. We pride ourselves not only in our professional service but more importantly in the personal touch we bring to our business. Has an agent/lawyer/contractor/vendor ever treated you like you were just another paycheck? The reason our clients come back time and again and refer all their friends and family to us is because they know we are part of the family.
Genuinely caring about the people we serve enables us to do things other agencies can’t. Rest assured, we will ALWAYS have your best interest at heart and work vigorously to get you the best deal possible on your home or business. The relationships we build with our clients enable us to work 100% by referral. The reason we are able to give top notch service to our clients is because our clients refer us a constant stream of quality family and friends to assist in their real estate needs. While other agents are out making cold calls and chasing “potential” leads, we are freed up by our referral base to service our clients like no other broker can. We are never too busy for your referrals!
Want to experience the difference for yourself? Call or text me today at 260-579-1516.
“Professional Service with a Personal Touch“
We’re Here To Help
Are you or someone you know considering a home purchase? Don’t hesitate to call or text me, Michael Archbold, at 260-579-1516 and I will connect you with the best mortgage professionals in the business who can get you your score, discuss ways to improve it if necessary, and put you on the path to home ownership. Click here to read more about our Buyer Services. Click here to browse listings NOW! Looking to sell your home? Call today to set up an appointment to begin developing your customized marketing plan. Click here to read more about our Seller Services.
Hoosier Home Listings by RE/MAX Results is a full service real estate Web site serving Northeast Indiana. We assist residential and commercial clients in locating, buying, and selling real property in the State of Indiana including but not limited to the counties of Allen, Huntington, Wells, Adams, Whitley, Wabash, Kosciusko, Noble, Dekalb, Lagrange, Steuben and cities including Fort Wayne, Decatur, Bluffton, Huntington, Warsaw, Columbia City, Butler, and Angola. RE/MAX Results is an Equal Housing Opportunity company.
Hoosier Home Listings – Home Improvements: DIY or Hire a Pro?…
… brought to you by Michael Archbold, Hoosier Home Listings, and RE/MAX Results.
The consummate professional, Michael Archbold (Associate Broker, REALTOR, ePro) brings a diversified background to the world of real estate. Born and raised in Fort Wayne, Mike graduated Wayne High School in 1992. He received bachelors degrees in Accounting in 1997 from Indiana University and Information Technology in 2005 from Indiana Wesleyan University. Mike comes to RE/MAX with more than 20 years of experience in sales and accounting. He began his career in real estate in 2000 as an investor.
