There’s no denying the housing market has delivered a fair share of challenges to homebuyers over the past two years. Two of the biggest hurdles homebuyers faced during the pandemic were the limited number of homes for sale and the intensity and frequency of bidding wars. But those two things have reached a turning point.
As you may have already heard, the number of homes for sale has increased this year, and even more so this spring. As Danielle Hale, chief economist for realtor.com, explains:
“New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago.
As quickly as mortgage rates are rising, the once red-hot housing market is cooling off. Home prices are still historically high, but there is concern now that they will ease up as well.
All of this has people asking: Is today’s housing market in the same predicament that it was over a decade ago, when the 2007-08 crash caused the Great Recession?
The short answer is: no. America’s housing market is in far better health today. That’s thanks, in part, to new lending regulations that resulted from that meltdown. Those rules put today’s borrowers on far firmer footing.
For the 53.5 million first lien home mortgages in America today, the average borrower FICO credit score is a record high 751. It was 699 in
Experts in the real estate industry use a number of terms when they talk about what’s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what’s happening with home prices and where experts say they’re going, here’s a look at a few terms you may hear:
Appreciation is when home prices increase.
Depreciation is when home prices decrease.
Deceleration is when home prices continue to appreciate, but at a slower pace.
Where Home Prices Have Been in Recent Years
For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might
As people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this category. In a recent article, they point out that a luxury home isn’t only defined by its price. Location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available.
According to the luxury market report from the institute for luxury home marketing, there’s been a substantial increase in how many buyers are purchasing luxury homes over the past two
Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.
The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:
If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision.
How An Investment In Real Estate Can Benefit You During High Inflation
If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.
The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.
Charming single level cottage style home in the wonderful Irvine neighborhood of Smoketree. Unique, very private corner location with only one wall attached. This home offers a great opportunity to bring your style and character when creating your own space. A spacious open floorplan floating to the kitchen that opens once again into an entertainer's patio/backyard with beautiful foliage. Association club house available for private parties. Two car detached garage with plenty of storage. Minutes to Irvine Valley College and The Irvine Spectrum which offers wonderful restaurants, entertainment and great shopping opportunities. Walking distance to some of the best schools in Irvine, as well as Irvine Valley College.
It’s important to understand history proves an economic slowdown does not equal a housing crisis.
In 4 of the last 6 recessions, home prices actually appreciated. Home prices only fell twice – minimally in the early 90s and then by nearly 20% during the housing crash in 2008.
If you have questions, connect with The Aaronson Group to discuss why today’s housing market is nothing like 2008. Call 949-388-5194 or email: info@previewochomes.com
If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.
The number of homes available for sale is likely to grow
There are early signs housing inventory is starting to grow and experts say that it should continue in the months ahead. According to Danielle Hale, chief economist at realtor.com:
“The gap between this year’s homes for sale and last year’s is
Incredible 2 bedroom + loft end unit location overlooking lush greenbelts with lots of privacy & serene views from every room!
Light & bright open floorplan features vaulted ceilings and numerous windows allowing the flow from the living room, dining area & kitchen onto the balcony with green hills view.
The kitchen has just been refreshed with exquisite quartz counter tops, new stainless stove cooktop/microwave, and freshly painted cabinetry. The master bedroom suite features serene views & A large walk-in closet. Spacious direct access 2-car garage with lots of storage. Perfectly located in A private end of the community offering plenty of natural light & greenery views.
.png)
.PNG)
.PNG)
