When does this market end and what does it mean for me?
I’m not seeing an end to this market for a long time. Yes I know there’s concerns lingering in the economy. But unless there’s catastrophic level economic collapse greater than the 2008 recession, we’re not going to see this market stop. Even when this market does end, there is not one industry expert predicting any type of collapse or drop in values on the horizon. The market may level off some in the future, but that’s probably a few years out. We’re dealing with about a dozen different factors that are driving home values today and none of those seem to be cooling off anytime soon.
- We have drastically underbuilt new homes for the past decade+.
- People are staying in their homes about 5 years longer on average than they were prior to the 2009 recession.
- An entire demographic of homebuyers (Millenials and now Gen Z) are now the largest home buying population in the US and they’re finally ready to jump into homeownership.
- Interest rates are still historically low even in the face of the rising Fed Rate.
- Thousands of people moving into metro-areas and out of certain states that haven’t been as economically friendly.
- The supply chain is a disaster and is driving material costs for new construction homes through the roof.
- Two years of federal government stimulus checks have put more people into a home buying position than ever before.
- Rising property values have caused rent rates to increase faster than the rate of monthly mortgage payments pushing renters into the real estate market.
- The refinance boom of 2020 and subsequent increase in interest rates have frozen the supply chain of home inventory due to cost of replacement.
- The cost of home replacement is limiting for potential home sellers so they just don’t move.
Those are just a few of the market factors driving home values higher. Until a few of those puzzle pieces are solved, catch up, or change in the opposite direction, we’re going to continue to see a strong sellers market and limited homebuying inventory.
What does that mean for you?
If you are not living in the home that meets the lifestyle you want to live for the next 5+ years, then you should probably consider making a move today. You’ll benefit greatly from the sale of your home. That equity can be used for an assortment of financial benefits to you and put you in the position you need to make a move to a home that better meets the needs of your family into the future. Waiting means a move in the future becomes even more expensive.
Your first step is to meet with a real estate expert in your market. To navigate this market you need someone that can look at all of the information, the type of home you want to purchase, and develop a strategy to make that move happen. They’ll provide you with a Comparative Market Analysis for your home and answer your questions so you can make the best decision. Our team would love to work with you! Schedule an appointment with us here.
We would love the opportunity to earn your business when it comes time for you to buy a home or sell a home in the Mansfield ISD area! Check out what our clients are saying about us and see what makes us different than other real estate brokerages in Mansfield.