Real Estate Markets
Aug. 4, 2022
It is very hard to predict the future of financial markets. The experts recently have been wrong about the stock market. They have been wrong about inflation. Additionally, they have been wrong about the overall economic lookout.
There are pundits currently predicting that the real estate market is in a bubble which will crash soon. Certainly, interest rates have risen, and the market cannot stay so hot for so long. No one knows what the future may bring.
In my office, I see that the frothy real estate activity of the last three years is finally showing signs of slowing. Having said that, there is still significant activity and new client translations that come in every day.
It is very hard to time any market. I have been doing this for a long time now. I find that real estate activity is generally not motivated by the status of the market, but rather upon the needs of the individuals and their family.
If you are thinking about selling, now is a good time. The prices are certainly relatively high and there are still very interested buyers out there. A seller is still in a very strong position at this time.
If you are thinking about buying, my advice is to proceed to do so at this time. While the interest rates and the prices are higher, everything changes cyclically. In the long run, prices will continue to rise. Interest rates will fluctuate, but the extremely low interest rates over the last five years were an anomaly. In my career of 40 years, I have never seen interest rates so low. Buyers determine their price range based upon the monthly payments that they can afford. Maybe the buyer's side of this equation will partially benefit due to the decrease in bidding wars.
I have read several articles recently from " experts" discussing the potential for a real estate market " bubble" and predictions related, thereto. The consensus seems to be that there will not be a bubble burst as occurred in 2008. The surrounding circumstances are tremendously different from what existed and occurred in 2008. The interest rates are nowhere near what they were in the late 1970's and the job market is still strong, which creates a large population ready, willing and able to buy.
My real estate office is continually busy with new transactions coming in on a daily basis. Please feel free to contact me for a no charge consultation to discuss your legal needs.