Is the Housing Market Showing Some Scary Signs?

Filed under: Market Comentary

Happy Halloween! In my video today, I’m talking about something that seems scary to people: the trends in the real estate market. Is there anything that you need to be frightened about?

I’ve read a few different articles recently that talked about the slowdown in the Southern California real estate market. I wanted to give some perspective on this topic since we are seeing the headlines coming through in the news stories.

My Perspective on the Changes

There’s no question that things have slowed down a little bit. In some ways, I think it looks like a healthy change for the market. We’ve been so spoiled with an upward trend since 2010, which has been an unprecedented market, especially for sellers.

We have seen an increase in rates and prices have gone up. So, we’re at a point now where people are holding off to see what is happening. Here are a few thoughts to add perspective:

  • New Laws: Now we have laws in place that require everyone to qualify for a mortgage by showing that they will be able to repay the loan. This requirement is a limiter that will have an impact on the number of people who are ready to buy.
  • Long-Term Strategy: One thing that I want to bring up again is that real estate is always a long-term purchase. Keep the long-term game in mind so that you are ready for the future.
  • Interest Rates: Regarding interest rates, it seems like the rates are high compared to what they were a few years ago. But, when you stretch it out over the historical timeline, you’ll see that interest rates never dipped as low as the current market (under 5%) until 2009 or 2010. We are still in historic
  • Hindsight is 20/20: A recent survey done by the California Association of Realtors showed that a little over 70% of the people right now think that it is a bad time to buy. Looking back is always 20/20, and seeing this statistic made me think of 2010 when nearly everyone thought that it was a bad time to buy a house. It turns out that it was the best time ever to buy a house.

Right now, more than ever, the power in real estate is a long-term game. I’d love to talk to anyone who wants more information, and I invite you to contact me any time for details. Thanks for liking, sharing, and commenting below!

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