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While consumer confidence about the state of real estate continues to poll low, most markets around the country are seeing a steady stream of activity.
So why are national headlines constantly highlighting the housing market’s inevitable demise? The short answer is this: because real estate is more local than ever.
National trends, insights and data aren’t always reflective of what’s really happening in most markets around the country. Which brings up the question…what is really happening in the housing market today? Here’s the scoop for you.
HOW DID WE GET HERE?
For the last number of years, the housing market has been one of the hottest topics, for better or worse, flooding feeds with headlines and grand statements about everything from bidding wars to price declines and housing crashes.
And for the most part during the “Unicorn Years” between 2019-2021, the trends and insights being reported applied to nearly every market in the country. Prices were appreciating, mortgage rates were low, bidding wars were high, and average days on market were short.
It was a total feeding frenzy, and business was booming. And then, like the flick of a switch, that all changed.
The shock of rising mortgage rates stopped many buyers and sellers in their tracks, waiting in a holding pattern for them to go back down again. While they’ve budged a little from their peak of 7.08% last October, they’re unlikely to go back down significantly any time soon.
However, that uneasiness has seemed to have worn off as consumers get used to the “new normal” of today’s housing market.
“Real estate markets are showing resilience, especially as buyers have accepted mortgage rates in the new normal of 6% – 7% range,” said George Ratiu, Chief Economist at Keeping Current Matters. “This has kept a steady pace of sales over the past few months.”
The key word to focus on here is resilience. Despite the rollercoaster we’ve seen the past number of years with everything that’s been thrown our way – real estate continues to stay strong. Some experts may even say this is one of the strongest housing markets we’ve ever experienced, and it won’t be slowing down anytime soon.
Bottom Line
As the old adage goes, you have to play the hand you’re dealt.
However, unlike gambling, your real estate business cannot be built on luck. Many agents got lucky with how easy it was to attain business during the “unicorn years” but this market is different, and what worked before most likely will not work now.
While that “boom” may be slower, it’s not over. People will always need to buy or sell a home, and that means they will always need you. And when mortgage rates drop, there will be an influx of ready buyers and sellers so you must be prepared now. Resource : KCM
