The media will sensationalize, confuse, and conflict real estate information.
Local, full-time professional Real Estate Agents are the best source of info, (and lenders they work with like Jason E. Gordon) because they working in your neighborhoods every week. They have the scoop, they are in the trenches.
Economists do not guess their predictions; they research the 30-year trends and other economic factors to come up with what may seem like bold predictions, but they are very fact based, historical trend based and mathematical, not theoretical.
"YOU DO NOT WAIT FOR THE RATES TO DROP" Says *Dave Stevens
"RENT THE RATE, BUY THE HOME, Then Refinance The Mortgage when rates drop in 2024. Suck it up now, to avoid writing 20 offers, well over asking next year!"
More Info On That Here: Uncomfortable Today, Painful Tomorrow
The 2023 Market has bounced back from the 2022 dip; Days on Market are dropping.
You may refi once the rates drop instead of trying to begin your home buying process in an even more aggressive market provoked by both the increased buyer pool and the lowering of rates.
*Dave Stevens, CEO Mountain Lake Consulting is bullish with his bold predictions for the remainder of 2023 into 2024 and as far out as 2025:
The expectation is we’re heading into the second or third largest home sales year in American History by 2025 and that will be fed by the single largest generation of homebuying Americans (Millennials) hitting the market between now and then as they reach that statistical age of 35 years old (see graph).
Bigger than The Baby Boomer Generation, Here Comes The Home Buying Millennials with Gen z Not Far Behind.
Also, low supply, which although predicted to increase in 2024and 2025, will still not be enough to meet the demand. But the good news for homeowners is steady increased home values and equity growth. Real estate has always gone up! It has peaks and valleys but just look at this chart dating back to 1965...trending up, up and away!
People that are focused on the here & now, vs. the future, are going to be left behind. Today, The Federal Reserve has brought on an awkward, technical environment trying to control an overheated economy.
Inflation is at roughly at a 4 and headed towards 2 sooner than the media is revealing, so those not seeing that the two is coming, will miss the opportunity of buying now and benefitting later. We will hit below 6% by December '23 and we’re heading into below 5% in 2024, complimented by a couple Fed reductions along the way in 2024 – which they will have to do because they will have pushed us into a mild recession by 2024.
The majority of the last 20 years has been a seller's market with the exception of the 2007-2011 Crash. 6 months inventory is a balanced market, 3 months or less is a sellers market and until more inventory comes into the market, the competition will only get worse. This is why we share to buy now and refi later, because it'll be much harder to buy ironically when the rates drop!
All graphics, courtesy of Buffini & Company and Brian Buffini's Bold Predictions July 2023