Housing Market Finally Moving Towards Normalcy
After a long time of unsustainable demand, low inventory and unrealistic interest rates the regional housing market is gently moving into a more even and normalized market.
The recent markets of 2020, 2021, and the first couple quarters of 2022 were fueled by heavy demand, massive leverage due to low interest rates, limited supply, tons of home equity. All this created an unsustainable pace in the market.
As home loan rates increased, and the market saw an increase in inventory things have begun to balance out. While it's still very much a seller's market, buyers are finding more homes for sale to choose from, and sellers are noticing that negotiating prices and other terms of a contract are the order of the day.
There's absolutely no comparison to the "Great Recession" of 2008. (Did you see the movie The Big Short?) If anything we can look back to the 2020 shutdown of the economy overall as the launch of this anomalous market shift of unbalance. The current state of the real estate market is moving quickly towards normalcy.
Some say that current interest rates are prohibitively high when in fact they're still quite average if one looks at rates over the last few decades. Remember the double digit rates of the 1980's?
Employment tends to be a leading indicator of forecasting the health of the real estate market. In general, employment has rebounded from the 2020 lockdown, so it's a natural evolution to see a complimentary rebound in real estate.
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