Most real estate experts agree that we are experiencing a “seller’s market” right now. This article will discuss if the real estate market trends will be changing soon. Prices are back up to the levels that we experienced at the peak in 2006. At the same time, demand is high and inventory levels are low.
One common question that we hear is regarding the anticipated trends that will be happening in the future. There’s no way for anyone to predict the industry with surety. But, there are a few things that we can look at which might indicate the way the real estate market will be shifting.
Cycles in the Industry Make Real Estate Trends Ever Changing
Even if we aren’t in the “bubble” territory in the real estate market, it is important to understand that there are always cycles in the industry. Prices rise and fall over the years.
It all comes down to basic economics: When the prices rise, then sales activity slows down. The slower sales cause sellers to reduce prices, then sales pick back up again. These patterns are normal in the real estate environment.
Since we are currently at an industry high, then it means that there is a good chance that the home prices will decline. In fact, we are already seeing signs that home prices are dropping across the nation. Of course, local factors will influence the way the home prices change. But, it appears that these changes are consistent throughout the US.
Should You Buy a Home Right Now?
The current trends don’t necessarily suggest that prices will crash in the next year or two. But, we are definitely seeing trends that home prices are starting to decrease, which could be an indication that the market is shifting.
At the same time, interest rates are going up. These higher rates could be contributing to the slow down because buyers don’t want to pay the higher interest costs. That being said, it might be the perfect time for you to buy a home if you are planning to move in the next few years so that you can avoid the higher interest rates that will likely be coming in the future.
Instead of getting caught up in the rumors in the industry, a better solution is to focus on the needs of your family. You need to have a place to live, and it makes sense that you are putting your money into a real estate property instead of flushing it down the drain by paying rent every month. Your payments add up over time, helping you build equity that supports the financial future of your family. So, often the best strategy is to buy real estate properties and hold onto them for a long period of time.
If you have questions about the real estate industry, then our expert team at DUFFY Realty is always here to help. We are happy to assist as you are looking for the perfect home for your family. Call today to learn more about the services that are available: (678) 318-1700
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