House Market Update

Monthly House Market Update

House Market Questions Answered:

 

House Market Correction

Should I wait to buy real estate?

 

Hello, this is Brandy Lee local Realtor here in the Franklin Nashville Tennessee area.

I’m bringing you my show House the Market?

The big question in today’s market is, “Is the housing market going to correct itself?”

I don’t know the future but from the data, the consensus is no.

We’ve got interest rates going up. We have inflation. You’d think these two factors would turn the house market to correct the appreciation of the past two years. So far this is not the case.

 

Should I wait to buy real estate?

Before addressing that further I’m going to address the people that are holding off buying real estate because they are waiting for prices to go down.

The thing I’m going to address is the people that are leasing. They’re sitting on the fence. To buy or not to buy? That is the big question. There’s 3 reasons why people that are leasing or renting right now are thinking that they’ll settle into renting.

 

Housing Bubble

#1 They’re thinking that the market might repeat the 2008 bubble burst.

There’s a specific reason why that won’t happen. Mainly, laws were put into place to stop that. There are no more crazy balloon loans available. Those are illegal. The 2008 housing bubble scenario is not going to repeat itself.

 

House Market Correction

#2 Renters think the housing market will correct itself.

There has been a 34% increase in home value over the last year in a lot of areas. Why isn’t that increased home value going to go back down?

I personally think one of the main reasons is that over the Covid crisis we increased our national debt substantially. That has to be paid for somehow. If property taxes have gone up that’s a good stream of income to help pay for that debt.

 

Monthly Housing Cost

#3 They’re thinking, “my lease payment could possibly stay a little bit less than a mortgage payment.”

There are a ton of investor groups now scooping up houses and so inventory is low. It’s probably going to go even lower and therefore there are going to be a lot of rentals where the rent price is going to go up. These investor owners are going to hike those prices up. You can expect that down the road.

This investor buyer demand is just one factor preventing the house market from correcting itself.

What should you do if your holding off buying real estate? In my opinion, it’s always good to buy. At the end of the day, you’ll have an asset that’s yours.