Gain an Advantage Over Other Buyers, Sellers, and Investors. Seller tips for selling fast and for the best price and buyer tips for finding the best deals in the Athens, GA area. Request a Consultation
Have you heard about the supposed impending market crash? Today, we’re here to set the record straight regarding this news. We firmly believe that a real estate market crash is unlikely, and there are many reasons why. Here are three key factors that keep the market stable and will continue to:
1. Limited inventory. Homeowners are facing a lot of challenges today, and the biggest one is the limited housing inventory. With fewer homes available for sale, buyers are competing fiercely for properties, leading to rising prices. This situation stands in stark contrast to the previous downturn, where an oversupply of distressed properties dragged prices down.
2. High demand. The largest demographic driving the current housing market is the millennial population, particularly those ages 30 to 34. As this group settles down, starts families, and seeks homeownership, the demand for properties is skyrocketing. Coupled with the restricted inventory, this surge in demand creates a seller’s market, boosting property prices.
3. Strong home equity. In contrast to the last recession when many homeowners were heavily leveraged, today’s real estate landscape boasts robust home equity. 39% of Americans own their homes and aren’t making mortgage payments anymore, and 29% have over 50% equity in their properties. This financial stability significantly reduces the likelihood of foreclosures or short sales.
One other thing to note is that rising interest rates have kept home prices from skyrocketing. However, we have observed that they’re projected to decline in the coming years. As rates decrease, buyers will enjoy improved affordability, further fueling demand in the market. This shift could potentially lead to an uptick in property prices, making now an opportune time for prospective buyers to act.
Based on the current market conditions and future predictions, we firmly believe that waiting to buy a home may not be the wisest decision. Reach out to us for personalized guidance or if you have any specific questions about the market in your area. Call or email us anytime.
