Friends and Clients —
My name is Dale Downing and I’m a Realtor with Realty Executives Dillon. I’d like to thank you for subscribing to my newsletter. Before we get started, if you are interested in seeing what your home is worth as of today, click here. If you would like to browse all the homes available in the county for free without getting spammed from hundreds of Realtors, click here. Now, let’s get started.
The two most frequent questions I get asked by far is, “What do I think the market is going to do this year?” and “Do I think there is going to be another crash?”
Based on everything I read, watch, and hear, I confidently say that absolutely no one knows for sure. But, the general feeling from “experts” is that it is going to remain relatively the same over the next few years. This means a steady increase in prices due to a lack of inventory, demand, a strong economy, and low unemployment rates.
As far as the “crash” coming – NO. Buyers over the last decade have actually qualified for their home loans and they can afford their payment. With that said, can there be an adjustment? Sure. But no one knows when that may occur – one, three, five, or 10 years - none of the experts can agree.
Here is what I do know – SO PAY ATTENTION SELLERS AND BUYERS. As of today, and that’s what really matters, interest rates are ridiculously low (3.5%), the economy is humming, people are working, and the housing market is strong. Because interest rates are around 3.5%, you have a tremendous amount of buying power. If rates were to go up ½ to ¾ of a percent, your monthly payment would rise several hundreds of dollars per month ($300 to $800 a month depending on the size of your mortgage). So for buyers, it completely makes sense to buy now, because they have the ability to save tens of thousands of dollars on interest payments alone while also taking advantage of any appreciation you would get over the next several years.
*Quick side note for those of you renting: The average rental payment is increasing 3% per year–your landlords should thank you. Stop renting and become a homeowner today.
Have a great day,