The news about the housing market doesn’t give investors the full picture. The real estate market is shifting, and when that happens, it can be hard to separate fact from fiction. That’s where as an expert real estate investor, advisor and one of the top 10 brokers in the world, I come in. I’m here to help you debunk the headlines and some common myths so you really understand today’s market and what it means for you.
Myth 1: Home Prices Are Going To Fall
You may have heard rumors that the market is falling, and property prices are going to crash. That’s because the media tends to sensationalize the headlines to describe what’s going on with prices.
When talking about appreciation (increase in prices), depreciation (decrease in prices) and deceleration (which means increase in prices but at a slower pace), terms are used loosely. The fact is, experts forecast appreciation will continue, just at a decelerated rate. That means that property prices will continue to rise, just not as fast and they won’t fall.
Higher mortgage rates and an increase in inventory means that the home price growth will be slower, but unlikely to decline.
Myth 2: The Housing Market Is In A Correction
The housing market is not in a correction. According to Forbes, “A correction is a sustained decline in the value of a market index or the price of an individual asset. A correction is generally agreed to be a 10% to 20% drop in value from a recent peak.”
Since home prices are still appreciation and experts project that will continue, just at a slower pace, that means that the housing market is not in a correction because prices aren’t falling. It’s just balancing out compared to the last two years, which was record-breaking and extraordinary in every way.
Myth 3: The Housing Market Is Going To Crash
The bubble is bursting! That’s the headline that creates the most worry for investors and homeowners alike. But this isn’t 2008 and the lending standards are very different today than they were back then. When people talk about a recession, they worry that mortgage credit lending will get tight. But that isn’t the case. Today, lending standards are higher, and those acquiring a mortgage are much more qualified in the past 10 years than they were in the years that led to the crash.
Final Thoughts
No matter what you read on the news about the housing market, having a trusted expert as your partner to help you navigate the real estate market is key. I can help provide you with knowledgeable authority about the ins and outs of the market, current trends, context and so much more. My motto is to strategize to maximize, and I do that by catering each strategy to the unique situation of my client. If you’d like to know what opportunities are available to you as a real estate investor, contact me today.
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