Interest, Inflation, Inventory, ohhh my...
I know we all have our eye on the headlines, but it’s important to weed through the click bate and really research the facts in order to stay accurately informed and make sound decisions.
Interest rates: Indeed they are higher than they were a year ago and this does impact the amount a buyer can borrow. However, it does not negate the buyers ability to borrow all together. Another words, buyers can still acquire a mortgage. There have not been added regulations or criteria added to the process to impede the ability to acquire a mortgage, like back in 2008. So, the sky is not falling and all is not lost. Stay calm and apply for the mortgage. Historically speaking, rates are notorious for fluctuating and if/when rates adjust downward mortgages can be refinanced. We got spoiled for a couple years, but we are now back to a more normal and healthy place. Choosing to not proceed with your real estate plans is not going to change that fact. If you are a well qualified buyer and are interested in pursing a real estate goal it is surely still a great option.
Inflation: Yes, things have gotten more expensive. Homes have gained record levels of equity. But, we are starting to see that slow and get back into alignment. This is a good thing! Again, history has shown that owning a home is a great way to earn wealth, acquire tax advantages, and protect your set monthly payments. There are very few assets that you can safely place your money in, guarantee a set payment amount, and enjoy tax benefits from. Homeownership has been a staple throughout history. Those of us in the real estate sector work diligently on a daily basis to stay abreast of market nuances. Now more than ever, you should be taking advantage of our expertise and utilize our guidance to make sound and wise decisions. Keep calm and call your real estate specialist. There are great opportunities to be had if you have the right guidance.
Inventory: Little by little, baby steps make progress. Trust me, I know a thing or two (or four) about baby steps! Progress in the right direction starts with the first step forward and we have definitely made that step in the right direction. We are seeing additional inventory coming into the market daily. There is a multitude of reasons that people decide to sell. The headlines would have you believing that people are to comfortable with their low interest rate and therefore are not going to sell so the shortage equates to more doom. However, many experienced homeowners understand the big picture and are not intimidated. Life circumstances change and many times current homeowners are ready to make a move towards their future, understanding that interest rates are just one of many variables and although purchase prices may be higher, so to is their equity to offset that. Again, proof that homeownership is one of the safest hedges against economic changes. Inventory is sure to continue to grow, providing buyers with more options.
Insight: I encourage you to take a moment to contact a real estate specialist and have a quick chat to learn more. We have access to information that may not be readily available to the general public, as well as a more thorough perspective and insight on how best to navigate the market to your advantage. Do not be intimidated by headlines. Learn the facts and keep your eye on the prize.