Thinking about selling or buying but paralized by timing? The Market is not crashing, this is why explains why real estate is not necessarily connected to a recession. It is so so important to talk about why the market is not crashing, and underscore how local housing markets differ from national. The housing market has been a topic of much discussion lately, with many people speculating that a crash is imminent. However, this is unlikely, and here are some of the reasons why.
The current housing market is driven by a strong demand for homes, coupled with a limited supply of inventory. Since 2008, lenders have been stricter on developers, so the pace of building was much slower than prior to the crash of 2008. This led to sustained and increased competition among buyers and bidding wars, further driving up prices. This demand is not likely to suddenly disappear, as there are still many people looking to buy homes, whether as first-time buyers or as those looking to upgrade their living situation. Interest rates, while rising, remain historically low, making it easier for many people to afford a home. This has also contributed to the high demand for homes, as people take advantage of the low rates to buy a home or refinance their existing mortgage. Much discussion about interest rate hikes dominates the news but really the rates are not sky high. Lastly, the COVID-19 pandemic has shifted the priorities of many people when it comes to housing. With more people working from home, many are looking for larger homes with more space and amenities to accommodate their new work and lifestyle needs. This contributed to the high demand for homes, and it’s unlikely that this trend will reverse anytime soon. Overall, while there may be some fluctuations in the housing market, a significant crash is unlikely to happen in the near future. The demand for homes, low interest rates, and shifting priorities of buyers are all factors that suggest stability in housing. If you are interested in buying or selling on The Main Line, click my links below to access up to date listings and seller strategies to take advantage of today’s seller.
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