Our Current Real Estate Perspectives - What's Real And What's Perceived?

Real Estate Agent with RE/MAX Platinum

The human thought process ...... is influenced by any number of factors, ie. past experience, the use of logic or common sense, along with the thoughts or ideas shared by others. While this combo of factors would seem almost "fool-proof" various aspects can often be "misinterpreted".

Looking specifically, let's take a look at a few misconceptions with today's real estate market.

  A. The price of housing will moderate with a reduction in cost, as increased numbers of buyer's are now priced out of the market.

  B. Interest rate hikes will take their toll. Until mortgage rates moderate, a slowdown in activity will continue.

  C. The current reduction in inventory has little influence with real estate pricing or valuation.

Let's take a closer look at each of the above statements to ascertain their level of validity. Looking at costs associated with current housing construction, the monetary investment in building a new home hasn't experienced any reduction or reached a cost plateau. As a consequence, existing housing prices haven't experienced what could be defined as "in free-fall". Where the conflict exists today, certain segments of our population misconceive "what they can afford .... versus what they desire". Moving forward, home construction entities will reassess their options as it relates to building lower cost housing. This might include a reduction in the number of amenities as well as size and design.

Mortgage rate hikes over the long haul, will affect certain segments of our population. For example, someone who is attempting to purchase a home in the 600K price range, will consider their options as it relates to how they can complete the purchase. If the 600K price range purchase is unachievable, a search will continue for properties which the purchaser can afford. Quite simply, people today continue to live in a variety of housing ..... this can range from a single wide mobile home to something which resembles Mar-a-Lago.

Real estate inventory levels, like any type of supply and demand commodity, are subject to market fluctuation. Because much of our real estate inventory is in short supply, house pricing, on a national basis, has not experienced any significant reduction. In fact, in many markets, prices continue with upward movement.

Potential real estate buyers should contact a knowledgeable real estate practitioner to ascertain what the current facts are regarding the items mentioned in the first paragraph. As they say, "Real Estate is local". Taking the time to gather information and understand the current situation, goes along way towards achieving success.

No one can predict with certainty, when real estate acquisition conditions might change or to what degree. Don't forgo your opportunity because you misread the market!       

Posted by

"Smith Lake Alabama's Top Producing REALTOR For Waterfront Properties"

Comments (6)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Great information.  Thanks for sharing, enjoy your weekend, and here's to a relaxing Saturday to start it off. Bill

Feb 04, 2023 11:42 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Sharon - there is no shortage of opinions nor perspectives and other points of view.  Maybe it can be the beginning of a conversation, then a connection and sometimes the combination can create a conundrum.  

Feb 04, 2023 12:10 PM
Phyllis Ross
eXp Realty LLC Salina Group - Salina, KS
Realtor Central Kansas Residential Sales

Wonderful information Sharon. Thank you for sharing. Have a wonderful day and a blessed week.

Feb 05, 2023 02:17 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Great information, thanks for sharing.  I hope you have a great day.
Feb 06, 2023 03:35 AM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Sharon Miller - wise words from a wise woman in the real estate industry! You nailed it!

Mar 07, 2023 11:41 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Sharon, for sharing your thoughts.

I hope you are having a productive month.

Mar 10, 2023 09:38 AM