Is it a good time to buy a home?
Nearly a year has gone by with the same doom and gloom language, not only is the real estate market overpriced; it will see a decline comparable to the market crash of ‘08, or so they say. What many pundits pushing this narrative fail to mention is the lack of similarity today’s economy has with the American economy of the early 2000s. Much stricter lending practices and a lack of housing inventory has made the housing market in a somewhat tumultuous time flourish, despite inflation and the negative sentiment in today’s market.
What are we seeing in the market?
Unlike the 2008 recession, banks no longer make loans based on stated income. Resulting from the last economic disaster which brought the housing market down with it, the Dodd Frank Act has been passed, resulting in stricter practices from lending institutions; protecting themselves as well as the economy. Furthermore, today’s real estate market suffers from a lack of inventory as builders struggle to keep up with demand. During the market over a decade ago, inventory was as plentiful as the US dollars printed during the Covid-19 Pandemic. When product exceeds demand, lower prices are evident and as the financial disaster coupled with high inventory, it created a disaster unseen in decades; one that will certainly not repeat itself today.
What are the benefits to buying a home today?
There’s no question about it, those who purchased properties after the market crash of 2008 and before the recent interest rate hikes, are in a much better position than any buyer entering the market today. As a result of cheap money floating around in the form of low interest rate loans, housing prices soared, all the while most other commodities in the economy displayed similar trends, causing inflation to set in. We are not in an economy or recession similar to the one in 2008, we are experiencing a time similar to the late 1970s and early 1980s. Runaway inflation is causing the prices of everything to rise, but those who understand owning assets during a time of inflation is more beneficial than holding money in the bank, will prosper. A homeowner who purchased a property during the economic boom of the 1950s and 60s saw their equity soar during the 1970s and 80s, even as the economy was held hostage by inflation and interest rates reached all time highs. Today it would seem ludacris if homebuyers entering the market in the 1970s were to hold out for prices to “return to normal” as home values would never return to prices of the 1950s and 60s; likewise, those avoiding today’s housing market, holding out for the “drop,” stand to be corrected. History doesn’t repeat itself but it does rhyme, and even as we are not experiencing a carbon copy of the US economy in the late 1970s, we are hearing the words “inflation” and “fuel shortage,” more often.
How is the local housing market?
Just as every economy is different, so is every housing market. Homes on the west coast are seeing different trends than a rural property. Nevertheless, as a whole, the real estate market’s appreciation has slowed to a more sustainable rate. It is now possible for buyers to purchase a home and not pay way over asking price, sometimes homes are bought for less than list price. Many take this as a sign of weakening in the market, but it’s more of a return to normal than a drop. For nearly two years homes appreciated at such a rapid rate it was hard to estimate value. As the buying frenzy of the early 2020s concludes, it gives buyers today a rare opportunity to invest in an asset which will appreciate over time, especially during periods of inflation. One market which may sustain the frenzy evident during the pandemic is South Florida. During the pandemic, many living in large cities riddled with covid restrictions moved to more relaxed areas of the county. In addition to the large migration shift to the southern United States, central Florida is undergoing one of the largest expansions. Even as the real estate market nationally begins to normalize, the migration shift to South Florida has the opportunity of sustaining the housing market evident for the past two years
How do I navigate this housing market?
Finding the right house for the best deal is no easy feat and it takes an experienced agent that has a deep knowledge of the local market. Elite Pro Properties is A North Carolina firm with offices in the Triad region of North Carolina as well as the Western Region of the state. Their agents not only have an understanding of the market, they have connections to off market properties and great lenders that guarantee the best experience and an advantage over other buyers in the market. Unlike most Real Estate Agencies in North Carolina, Elite Pro Properties has its roots in Southern Florida. Mildred Villamar, Broker in Charge of Elite Pro Properties is the Broker of Villamar real Estate located in Plantation, Florida, giving agents at Elite Pro Properties the unique ability to not only sell properties in both states, they can seamlessly facilitate a relocation. Today’s real estate market is not one for the inexperienced, but with an agent from Elite Pro Properties, expertise is guaranteed.