The Ever-Changing Housing Market Has Cooled
Yes, the housing market has been somewhat unstable recently, but things may be starting to stabilize again.
For a firsthand account of how the latest pandemic buying frenzy has affected markets, Lindsay the Stager checked in with a real estate agent in North Carolina, Isabelle Apel, during episode 7 of Design Time: From the Floor Up video podcast.
The Homebuyer’s Real Estate Conundrum
Is now a good time to buy a house? Will interest rates drop? Are house prices going down? These are just some of the questions being asked by economists, bankers, lenders, real estate experts, and, most importantly, optimistic homebuyers.
Are Interest Rates Going Up Or Down?
“Rents are going up faster than interest rates in a lot of ways. And so, at least with an interest rate, you’ve got probably a 30-year mortgage, and you can eventually refinance. If you stay in that rental market, you’re going to keep going up,” Isabelle mentions.
The American housing market has experienced dramatic ups and downs in recent years. Prospective homebuyers, particularly first-time buyers, would want nothing more than for this roller coaster to level off. Housing inventory is low, and interest rates are still high. However, you are no longer obligated to offer $50–100,000 above the asking price.
What Happens Next?
Resilience and readiness are essential for succeeding in the real estate market, which is a constantly evolving inflationary roller coaster.
Real estate companies need to be ready to seize opportunities when they present themselves and shield themselves from temporary setbacks by keeping an eye out for warning indications.
- Utilize creative acquisition terms like vendor debt and delayed closing when making a purchase.
- If you are required to own properties for a prolonged period, use small amounts of leverage to assure liquidity.
- Only make investments in the top areas.
- Research, research, and do more research: demographics, zoning, environmental factors, and more.
- Keep up with current market trends.
Opportunities that many people pass up can emerge if you are prepared and able to quickly respond to market uncertainty.
Despite a cooling market, time is still of the essence when buying or selling.
What goes down must ultimately come back up, like on a roller coaster.
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