There is no bubble in today’s housing market. No bubble, no burst. It’s basic economics, high demand with a very low supply. What is true is, it is a very exciting time to be in real estate. There is more demand for housing than there is inventory. Environmental factors such as the pandemic, the need to stay at home to work, and a greater desire for balance between life and work are driving people to buy homes. Homes in areas they never considered before.
In 2021, sellers had many offers for their homes and were able to escalate their sales to the highest level in five years. These types of sales are slowing down, as prices even out. In 2022, each sale will have fewer bids and house prices will be more reasonable and accurate for the house.
Interest rates on 30-year mortgages are expected to increase slightly (from 3% to 3.1%), but so will the annual income rate. Even with this slight increase, interest rates are still incredibly low. The imbalance between demand for housing and inventory will continue.
We are definitely not in a bubble but on a path to success. For sellers, there is no time like the present to begin preparations to sell your home. On my website www.stephenburchard.com you will find my step-by-step guide to help you.
For buyers, it’s also a good time. Interest rates remain at the lowest, right now; home prices are as honest and good as they will be for as far as I can see.
You will get your money’s worth on a home in the Coachella Valley or my name is not Stephen Burchard, The Desert Bowtie Realtor, taking the (k)nots out of real estate. Remember me, when you have any questions or are ready to make a move either to sell or buy your home.