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 Article: Rising 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".