We’ve Ween The Headlines Stating The Market Is Crashing But If You Read The Article There's No Supportive Evidence.

Let’s go beyond the hyperbole and sort through some trends and facts of what’s actually happening right now.

We’ve seen the headlines stating the market is crashing but if you read the article there's no supportive evidence. Let’s go beyond the hyperbole and sort through some trends and facts of what’s actually happening right now.

𝐒𝐮𝐫𝐯𝐞𝐲 𝐒𝐚𝐲𝐬: Last week 77% of consumers and 44% of agents reported that they were concerned about a housing bubble. Shocking as we are still seeing 5 offers on every single property. This simply is not matching what the market is showing us, but let’s take a look at some concerns.

𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐀𝐟𝐟𝐨𝐫𝐝𝐚𝐛𝐢𝐥𝐢𝐭𝐲: Right now our affordability is borderline with what makes sense for a healthy market. As prices rise, we need to keep an eye on incomes and job markets. In 2018, prices went way up but incomes didn't go up as quickly so we saw softening for about 6 months until things leveled out. Buyers picked right back up and we saw more appreciation, which is what we're seeing today.

𝐑𝐞𝐜𝐞𝐬𝐬𝐢𝐨𝐧 & 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧: Interest rates are rising to combat inflation, but that can also lead to a recession. During 3 out of the last 5 recessions, real estate appreciated. Over the last 50 years real estate has beaten inflation, decade by decade, except for the 2000s, which it missed by 0.3%. Another piece of data that makes the headlines not accurate.

𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲: If there are a ton of buyers in the marketplace and there's no homes for them to buy, I'm not sure how that creates a bubble. All of a sudden there's going to be tons of homes and no buyers. The supply and demand chart is not going to move that quickly. One estimation stated that we're at a 7M home deficit in this country. No inventory but 5 offers on every property makes a hard case that we’re in a bubble.

𝐓𝐢𝐦𝐞 𝐲𝐨𝐮𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧, 𝐝𝐨𝐧'𝐭 𝐭𝐫𝐲 𝐭𝐨 𝐭𝐢𝐦𝐞 𝐭𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭. Make educated decisions from data and information, not headlines. If you have any questions about your specific situation, the HBB Group is standing by to walk through what makes the most sense for your current situation and provide clarity to plan forward.

Have a great day, we'll see you soon.