What Happens Next in Real Estate? Let me get my Crystal Ball

By
Real Estate Agent with ERA, Wilkinson Real Estate Charlotte 183201

                       What Happens Next in Real Estate? Let me get my Crystal Ball

                                 Melissa Polce, ERA Wilkinson Real Estate, NC & SC 704-450-4335

 

How many times do we as agents get asked "what happens next in our Market?"

For most of us in this business, we have been blessed with a full bloom of business lately, certainly feeling like the old days when half the number of agents used to be in the business...Booming Real Estate values  is surely part of the cyclical market that only a few years ago saw it's sharpest decline in values and tens of thousands of people were displaced in the RE Market crash 2007-2011...since then it has been a steady climb with the last couple of years just being outright bursts of value...surpassing the average 6% growth return in most markets....

For my hometown of Charlotte, NC- the Real Estate market has exploded- mostly in communities/neighborhoods within 5 miles in to center city...sure the outerlying suburbs have also seen a robust return on values- but the value difference is almost 2.5 to 1 from in-city to suburbs.

What next though? Is there a ceiling? Will wages catch up to raising home prices? Will mortgage rates remain hovering at a new high of 5%? Well, in reading the article below- the rising home prices can create unstable times:

 

  Core Logic RE ArticleRising Home Prices Create Unstable Markets

 

In conclusion- we as professional are asked all the time what is going to go on...we wait impatiently as you, the general public does as well. My gut tells me we need to have a small correction, wages are not being increased to sustain the sheer amount of market growth values...as new mortgage products come out for higher debt ratios, it also tells a tale- people are wagering more debt again, looking at the highest plus tier of what they can afford...just to afford something likely 10-15% overpriced...as appraisals have started coming in low- we need to re-evaluate...is this where we want to go again? Even a mini correction will be just that- a correction...be prepared, be smart. That is just what I see...in my "crystal ball".

Comments (3)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Melissa, glad to hear you are enjoying a vibrant market, and know your inventory is very slim, just like Denver's.    We don't have a crystal ball to know when it will change again.

May 03, 2018 07:53 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Melissa, how many times have clients asked you if the property value on a specific listing is going to go up. I always tell them I will pull out my crystal ball and find out...haha

May 03, 2018 08:29 AM
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Thanks for sharing the information on this community, I hope you sell many of these homes.

May 20, 2019 07:35 PM