Will Our Real Estate Market Crash?

Our market is slated for a correction instead of a big crash.

We have been getting asked a lot about whether or not the market is going to crash. I am here to tell you that I don't think that will happen. Today we will point out why we will see a market slowdown but not a crash.

We are virtually halfway through 2022, and we have seen unprecedented high prices, rising interest rates, and inflation. These factors are the reason why we will see a market correction in the near future. Currently, we are not experiencing the impact of a slowdown as some other parts of the country because we continue to be in a very high-demand area.  

“We expect these conditions to continue for the foreseeable future.”

We are still seeing houses selling at roughly 1% over the asking price on average and the average sales price is right at $367,000. These higher prices are definitely having a significant impact on first-time homebuyers, and the amount by which prices and interest rates have gone up has curved some buyers’ purchasing power. There are even some buyers that have decided to wait on the sidelines instead of buying. Even with the prices, interest rates, and inflation, we do not advocate renting versus buying right now...unless it is your only option.

How will this market correction impact you? Well, if you are a Seller, the longer you wait to put your house on the market, the longer it will take to sell it, and the less you will likely get for it. We are already seeing increases in the days on the market and more price adjustments that we have seen in the past two years, and we expect these conditions to continue for the foreseeable future. If you are a Buyer, hang in there and don't give up on your home buying dreams. Things are going to change...in fact, they have already begun. More inventory will be on the market and the days on market will increase. As these events continue to present themselves, you will have a greater opportunity to buy without the chaos of multiple offers.

We know that inflation is not going anywhere anytime soon, and interest rates will possibly increase throughout the year, but we do not expect a market crash—again, simply a correction. We watch the data every day so we can best help you in our shifting market. If you have any questions about our market, don’t hesitate to reach out to us by phone or email. We look forward to helping you with your real estate needs.