Housing Market Slowdown

How bad is the housing market slowdown?

Headlines

The headlines would have you believe that the sky is actually falling. Your home value is in decline. The equity you have built up over the years has just flown out the window. The asset you have that you thought had gained in value has lost it.

Hold up! Let’s take a look at the actual numbers.

Headlines vs. Actual

The headlines have averaged about a 20% decline in home value pricing. The actual is 1-3% depending upon your location. Even with inflation and banking issues, there are key reasons why residential real estate is holding steady.

Covid Crisis

Due to the Covid crisis, people now put a much higher value on their homes. They do not want to be stuck somewhere they do not like again. Many buyers have already moved into a property that would suffice in an emergency. Many more buyers are anxious to make their move. Another set of buyers made their move sight unseen during Covid and are unhappy with their property. They are looking to move again, even though it’s only been a couple of years since their last panic move.

Security

Living through a period of time when you had to stay in place was traumatic for many people. Renters realized they were in a bad position. Homeowners took inventory of how secure they felt in their current property. Many people migrated to locations that they felt provided a safer environment. News headlines continue to communicate security issues. It doesn’t seem like they will ever go away. For this reason, people will continue to seek properties that provide improved security.

Working Remote

Due to Covid, a large percentage of employees have been set up to work out of their homes for all or part of the week. This places a higher value on the home and provides an additional tax deduction.

Thinking of Making Your Move?

If you are thinking of buying, selling, or investing we would love to have a strategy meeting with you. Give us a call or schedule online!

 

 

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Schedule your home value consultation to help determine your adjusted home value.