submitted by Kathleen Layton, Berkshire Hathaway Home Services, Fox & Roach Realtors
Let’s start with what’s NOT happening, at least here in Bucks County…. falling prices, high inventory levels and a real estate market that’s on the edge of a cliff. The market isn’t going to crash because home equity is at an all-time high, as 68% of all homes in the US have at least 50% equity or have no mortgage at all.
So, stop listening to all the breathless hype many in the media are espousing and consider this. After an 11-year price run up, the rate of increase has leveled off, but local prices have not tanked.
As a matter of fact, the average sale price was up 2.5% in June. What HAS decreased is the number of homes that have sold, and THAT is due to an inventory shortage that is the lowest in decades and which continues to plague the market and frustrate home buyers.
Higher interest rates have impacted the market significantly. Not only have some homebuyers, particularly first-timers, been priced out of the market, current homeowners who are ready to move up are reluctant to give up their pandemic rate mortgages and are staying put, which further contributes to the low inventory level.
However, here are predictions by those in the know that rates will be in the mid 5% range by the end of this year, the upper 4% by 2024 and in the mid 4% range by 2025. These guru’s (who have a good track record BTW) also feel the bottom of the market is in the rear-view mirror and that 2024 is poised to be a comeback year, with 2025 expected to be the third or fourth best year in the history of real estate.
They’re bullish on these predictions because three million households are making $150k/year and still renting, millennials have arrived, and they all want to buy homes. We could be on the doorstep of the largest wave of homebuying demand in US history.
The bottom line? Whether you’re buying or selling, it may be time to get off the fence!
And now, more than ever, the agent you choose to work with matters. Choose wisely!
Call Kathleen today 216-801-2019.