FEAR FACTOR.

FEAR FACTOR.

Anyone out there reading the daily news and wondering if maybe they need to take a time out? Small wonder, with sensationalist media headlines braying nonstop about the US housing market's demise, it certainly feels like a good time to switch to decaf. It reminds me of that snarky old-time news adage that states,?“if it bleeds, it leads.”?In a desperate arms race for clicks and likes, only the most unrestrained and provocative headlines capture our scattered attention in a content saturated world.

And it’s this fear-based agenda that is causing one of the biggest miscalculations some buyers are making right now,?encouraging them to bet that in a few months/years they will be able to pick up “bargains.”?(I myself have looked in the bargain bin from time to time and it’s always XXS or XXL sizes for stuff that looks like?Jerry’s Puffy shirt.?There’s usually a reason for so-called bargains.)

But in terms of facts, the unfortunate reality is that in most markets home inventory remains at an all-time low. Add to that a decade of anemic housing starts (further exacerbated now as interest rates rise) being met by massive future demand from the 130 million some-odd US millennials and Gen Z-ers entering household formation age…combined with multi-billion dollar private equity investors on standby to snap up any such “bargains” in a world where rents (and returns) have escalated. From that vantage point, the chances for sweet, sweet housing deals for merely wealthy ordinary citizens appears pretty slim at best,?and those paying (rising) rents while waiting may regret having done so a year from now.?

Granted, I have no crystal ball. If I did, I’d have invested in things like Moderna or toilet paper manufacturing back in 2019. But nevertheless, it’s worth considering this perspective if you or your family has a need-based reason to buy a home.?In all this lies the most important role of professional real estate agents:?the ability to navigate through all the noise, to extrapolate the data that matters and is relevant to each individual client’s specifics and then provide insights and options that are curated, accurate, current and meaningful in making smart decisions. Buying a house is the proverbial port in a storm where despite serious economic headwinds out there, it can help insulate you while providing savings, tax breaks, and the ability to customize your?“She Shed”?as you see fit.?For those who can make that leap, a good agent can help guide them to a great choice.?

This is not to say that there is not any cause for genuine fright out there with a slowing economy, serious geopolitical instability, the specter of inflation, and all the other disturbing characters in our personal Riverbottom Nightmare Band. As a good friend of mine says,?“no one ever catches the market bottom on purpose.”?If it’s genuinely not the right time for you to make a move, we’ll tell you that. Without question, there’s people reading this right now to whom we’ve given that exact sort of advice. No matter which way the economic winds blow, whether you are trying to buy, sell or lease-- with the Shafer Group as your personal real estate advisory,?you can trust that fear will never be a factor.