There’s Positive News for the Real Estate Market!
With many media scare tactics are out there today, The Mulvihill Group wanted to share our knowledge about the current and predicted Real Estate trends by our market experts!
There is expected to be a market adjustment; however not a crash like in 2008. This is because the real estate market is calming down to match the current pace of the economy following the fast paced recession recovery. Affordability has been reduced with the appreciation increases over income growth. This has effected demand from a sprint to a jog. While tariffs and the international economic uncertainty are holding back the growth and housing demand, particularly in the high end markets ,it’s not holding back the majority.
This will result in home prices slowing to a more sustainable pace which will allow for incomes to play catch up. Therefore, combining favorable demographics will help sustain housing growth in the long run, even if there is a recession.
Some positive things to be grateful for and focus on is that the mortgage rates are still low while home affordability historically is still high! Current housing prices are not in a bubble, they have just adjusted back to long term trends. Appreciation rates are slowing to a healthier pace and inventories are on the rise while remaining low enough to continue modest appreciation. Household incomes are on the rise and household formations are rising as well after the fall in 2017 & 2018.
With these being the facts at hand, Real Estate experts are predicting that MORE people will want to buy or sell a home in the next 10 years than ANY point in the history of the United States! THIS IS GREAT NEWS!
There is a lot of good in reality compared to the negativity that too often swirls on social media, television, and radio. So get your ducks in a row and be positive if you’re looking to buy or sell! Everything will be just fine!
The Mulvihill Group
Turning Dreams Into Memories
(Information credit to Dan Elsea, CEO of Real Estate One)