In our 24 hour a day news cycle there is a lot of talk about just about everything. I learnt a long time ago to limit what I listen to and who I listen to as well. Making sure I read both sides of a story.
There is a lot of talk about recession, inverted yield curves, past history, etc. But there is little talk about how things are also different as well. History says that over a period of time there are going to be adjustments. Be that in the stock market, real estate or just about any other market you study.
We have been hearing for years that interest rates are going to rise, in fact in many countries around the world interest rates are currently in negative territory, it actually costs you money to have your money in the bank. So, what we hear is not always what comes to pass as we currently are going through a period where interest rates have dropped again and manypeoplewho missed the opportunity to refinance because of lower home values are taking advantage now.
Several mortgage professionals are asking agents to insert longer settlement dates because it is taking longer to clear loans because of the increased demand for refinances.
We have been seeing for the past two years a real shortage of homes for sale at almost every price point. We have also seen a demand for homes from buyers, this has caused prices to rise, and values of homes to rise overall. This situation does not seem to be changing. Land is scarce in many areas and so new homes are expensive to build and thus are priced accordingly as well as the land itself is expensive to acquire. Builders and investors are currently building lots of apartment building for rent, rather than homes for sale.
Will the "recession" when it comes affect real estate? Probably in some markets and at some price points, yes. Overall, probably not so much as in every market people are moving, for jobs, because of family events, deaths, marriages and births. This is not going to change, so if you are thinking of selling for one of these reasons, don't worry, there will be buyers out there who want to purchase. And if you are going to purchase, then clean up your credit and get ready as the market is still going to be active and you will still be competing with other buyers out there.