MINT HILL, NC – The answer to this question truly depends on who you talk to. Some believe a crash much worse than 2008 is coming, while others don’t see any signs of a crash coming at all. Of course, we all know, that what goes up, must come down, but how far down?
The “experts” have differing opinions on the housing market. While there are still record monthly price increases and inventory is still rather low, existing home sales are slowing down. However, they are still strong and coming close to the number in late 2019.
The Housing Market Still Looks Good
Currently, the housing market still looks pretty good. However, there are some things that are causing some real estate experts to think the market is headed for a crash. Home values have gone up nearly 40% since the pandemic and interest rates have gone up, as well.
Often, when interest rates go up, it takes time before the real estate market sees the complete impact of rates going up. The combination of higher prices and higher rates could cause many buyers to stop looking for a home. If this happens, and the ratio of high prices to rents continues in the current direction, it could mean there is a bubble that could pop.
Likely Outcome for the Real Estate Market
The Mint Hill real estate market and most of the rest of the country will likely see a rapid cooling throughout the rest of the year. This slowdown could also lead to a drop in prices. In some areas we could actually see prices continue to rise throughout the rest of the year, just at a slower rate.
However, this will also depend on the market. Homes for sale in Mint Hill might continue to go up in price at a higher rate than those in a larger city, such as New York City. It’s likely that homeowners in the luxury market will suffer a decline first. With high inflation and no end in sight of high inflation, the market will be impacted.
Buyers may not be rushing out to buy as fast and sellers may see properties sitting on the market a bit longer. However, it’s important to remember, that the past year or so has been extremely hot. A cooling market could help return it to a more balanced market instead of the extreme seller’s market we have been in.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | firstname.lastname@example.org | www.1stchoicepropertiesinc.com