June Blog – Is the real estate market crashing?

There has been a lot of turmoil in the real estate market over the last few weeks. With higher interest rates, lower 401(k) funds, and over-all economic woes with fears of recession, has the market crashed or it’s bubble-burst?

Short answer, Probably Not.

One thing I do know is that there are still many buyers out there looking for homes. I also know that we have been riding the real estate wave for the last 2 years. 2020 was already going to be a peak year for prices and demand and COVID has pushed the demand up. We know what happened: low interest rates, increased wealth for most income levels and changing trends and demands for buyers and sellers.
Biggest buyer groups became millennial’s and empty-nesters.

The market is now normalizing, but definitely not crashing! We saw 20% price appreciation in the last 2 years. It was not sustainable. Some of the pricing might be coming down, but are still higher than 2020. Price appreciation in 2022 is still expected to be about 5% to 10%. The inventory in most Towns is still lower than what is normal in the summer. Depending on how the inventory is relative to other years dictates the prices.

This is still a great time to SELL and Still a Great time to BUY. We are also entering the Summer Market where some buyers are taking vacations and not actively looking at real estate; thus reducing the demand and the competition. Perhaps the best time to buy.

Need help? That’s why I’m here!!

Barry