Housing Market – Correction not Crash!
Over the last couple of weeks, I had the pleasure of listening to multiple individuals, discussing the current Housing Market.
Equally, today I was reading an interesting article in the National Association of Realtors, Realtor Magazine, written by Melissa Dittman Tracy.
The article alongside recent commentary I have been listening to, is about remediating the fears associated with another ‘housing bubble burst’. We must accept that many of you will have concerns, and these are legitimate based upon prior experiences you may have had. I acknowledge these. Our current situation, is more of a market correction. There are factors which are influencing this correction, included but not limited to increasing interest rates.
Buyer fatigue, another factor, from recent times of having to engage in multiple bid situations. These factors, in themselves were catalysts for the market to stabalize, and hence we see a market correction. The impact of interest rates, creates an uncertainty for Buyers, and their purchasing power. It is important to note, that current rates are still in a great position to the times where we witnessed interest rates, up and over 10%. It is important for Buyers to ‘shop around’, interview Lenders, understand the financial landscape that they are entering into.
This is one area, that as Realtor, I can introduce you to a range of providers that would be welcoming to have conversations with you about your needs. As, I said earlier, recognizing Buyer concerns is legitimate, but I want to be able to connect you with those that can discuss those fears and present the facts according to your need
So are we likely to see a market crash or a “bubble burst’. Factors such as the sub-prime mortgage market and the availability of inventory are indiciative that this is unlikely. We will see prices correct in the current market.
The sub-prime mortgage market is now much more heavily regulated than it previously was. There is a greater expectation on Borrowers, to provide documentation and evidence of affordability, reducing the risk of homes going into foreclosure. In 2008 we witnessed people struggle to meet the high cost demands of payments.
In the current market, our position is one of education and ensuring that we are informed by “those in the know”.
If you would like to reach and speak with me, about your Real Estate Needs, then I would be happy to help. I am equally happy to connect you with one or several of the Brokers that I have within my peer group that could explain further our current lending opportunities, interest rates, market position, so that you, my clients can remain informed.
Have a special day!