What Happens Next...

Well the world of real estate is in chaos again. Rates are up, homes are taking longer to sell and selling for less, buyers are upset about the rates and the media is telling everyone the sky is falling. What are the weary real estate professionals to do?

I asked a friend his thoughts and wanted to share a couple of them with you.

"Are you worried about the market?"

"Worried no but I certainly am concerned about the short term market. The rates are a challenge to explain to first time home buyers as most of them were children the last time rates were this high. They think 3% is normal and that will take time for them to accept. Inflation and other economic worries are certainly out there, but you must remember a key factor."

"What is that?"

"Housing is one of 3 essential things people need, along with food and clothing. As long as the population keeps growing new homes will be needed, builders will build and buyers will buy. The question will be do they buy smaller homes, greener homes, condos... will we see a change in what buyers want and what impact will a change have is what I am focused on."

"Do you expect prices to fall?"

"I have always said a home is worth what people will pay but I think the last couple years proved that wrong. Everyday I heard buyers say they paid more than the house was worth, but they were desperate to get a house. So I would answer the question this way... I think homes will sell for less as buyers become unwilling to over pay, but I don't think the value of the home actually has gone down. The other factor is that if you are selling and buying... yes, you will get less for your current home but you will pay less for the new one than you would have just months ago."

"So in your opinion is it a good time to buy a home or should people wait to see if prices go down?"

"That is such a hard question to answer because we don't know what will happen next year. Do rates go up further or do they drop, what does the election bring and what happens in the economy? I know this... when you buy you lock in your rate and payment but when you rent your payment will go up (possibly every year). So pay 7.5% for your home and build equity or pay 100% to your landlord. Which is the better choice? Even in 2007-09 when home values dropped they bounced back rapidly and have appreciated at a rapid rate so I feel good about the long term."

Interesting answers... what do you think?

Susan TridicoPrince

Account Executive Commercial and Residential for Chicago Title Agency, Inc

2 年

Love this and so true??????

回复

要查看或添加评论,请登录

Michelle Stropes的更多文章

  • Spring Reading List...

    Spring Reading List...

    The warm weather is almost here, well it keeps popping in for a couple days and then hiding for a few, but spring is…

  • The Key To Home Ownership

    The Key To Home Ownership

    Home ownership has always been part of the American Dream. Building generational wealth, not making the landlord rich…

  • Rates are coming down... It is time to buy.

    Rates are coming down... It is time to buy.

    There have been reports that refinances are increasing and that loan applications are on the rise. Why? Because rates…

  • Success Formula

    Success Formula

    Is there a simple formula for Success? I want to share this post a friend wrote..

  • Rates are Down

    Rates are Down

    Rates are down, spring is here, Friday it is going to be 78 degrees and sunny here..

  • Become a home owner in 2025...

    Become a home owner in 2025...

    Home ownership has always been part of the American Dream, and that is still the dream in 2025, despite rate increases,…

  • Become a home owner this year...

    Become a home owner this year...

    Is 2025 the year you become a homeowner? So if that is going to be one of your goals, lets talk about the things you…

  • Monday Question...

    Monday Question...

    Today I wanted to ask my realtor friends a question and share an answer. When your clients ask for a referral for a…

  • Amazing Physician Loan Programs...

    Amazing Physician Loan Programs...

    Our programs provide doctors (MD, DO or DPM) with special benefits to help meet home financing needs. New Doctor Loan…

  • Truth from a friend...

    Truth from a friend...

    I hate promoting myself, but I know that in most cases I can provide amazing service to your clients who need a…

社区洞察

其他会员也浏览了