SUMMER SLOW DOWN
Kathleen McDowell
Money Coach, Advisor & Investor, REALTOR? / Residential Real Estate Expert, Founder of Live Richly
The talk of a housing bubble?in the coming year seems to be at a fever pitch as rising mortgage rates continue to slow down an overheated real estate market.?
What’s going to happen to housing prices?
Over the past two years, home prices have appreciated at an unsustainable pace causing many to ask:?are things just slowing down, or is a crash coming??
Ignore dramatic headlines intended to draw attention. Listen to real estate experts who use historical performance and experience to forecast.
The Reality of the Shift in Today's Housing Market
The reality is we're seeing an inflection point in housing supply and demand. Active listings have increased more than 26% over last year, while showings?have decreased almost 17% from last year.? This is an inflection point because, over the past two years, we've seen a massive amount of demand (showings) and not enough homes to buy, causing unprecedented price increases.?
Today, supply and demand are inching closer together and are driving the sudden market slowdown.
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What Experts Are Saying About Home Prices?
Right now, most experts are forecasting home price appreciation in 2023, but at a much slower pace than the last two years. The average of the six forecasters below is for national?home prices?to appreciate by 2.5% in the coming year. Only one of the six is calling for home price depreciation.
Bottom Line?
The real estate market is slowing down, and that's causing many to fear we're in a housing bubble. What we've experienced in the housing market over the past two years were historic levels of demand and constrained supply. That led to homes going up in value at a record pace. While some overheated markets may experience price depreciation in the short term, according to experts, the national real estate market will appreciate in the coming year.
MORE importantly, let's connect to discuss your goals and I'll share successful strategies for investing in ANY market cycle. Each cycle is different and comes with its own challenges and OPPORTUNITIES.