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Is the Real Estate Market Going to Crash?

By
Real Estate Agent with Royal Shell sl3505095

5 Reasons There Will Not Be A Housing Crash

 

Are you waiting for the housing market to crash to buy a home in Southwest Florida? If so waiting could cost you more money in the real estate market. A recession may be on the horizon for 2023 but the housing crisis we saw a decade ago was caused by many different circumstances. Below are five key points as to why I believe the housing market will not crash.

 

  1. A normal supply of homes in a regular market is between 5 to 6 months. We are still only around 2.2 months.
  2. Twice as many job openings as candidates, this will keep unemployment low.
  3. 90% of homeowners have interest rates under 5% so fewer people will be willing to sell their homes, straining the supply even further.
  4. People keep saying there are a record amount of homes being built, but builders are so far behind to catch up so it will take ten years for supply to meet demand. This does not account for labor shortages and supply chain constraints. Plus the permitting process is backed up.
  5. Demand is not pulling back because millennials are in their prime buying years.

 

Home prices will continue to appreciate moderately until next year. Interest rates will continue to rise to fight inflation. So if you are waiting to buy a home then expect to pay more.

Worried about buying or selling? With The Naples Agent, you don't need to be! Contact us to start the process.

 

Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

All true..prices may be softening a bit but that just means we are heading into a more normal market!  Sellers should not be upset about this!  Owning your own home is usually always an excellent investment that pays off--not just economically but as a lifestyle and the concept of "home"

Jun 16, 2022 08:18 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and enjoy your day!

Oct 18, 2022 06:23 AM