How many different stories have you heard about the housing market recently? The good, the bad, the ugly. But, what’s true and what isn’t? Let’s lay out the basic myths you have probably heard.
1. Home Prices are Going to Fall
Experts predict that home prices are actually going to continue to rise. This appreciation will be slower than increases we have seen in 2020 and 2021, but an increase nontheless. Selma Hepp with CoreLogic explains: “higher mortgage rates couples with more inventory will lead to slower home price growth but unlikely declines in home prices.”
2. The Housing Market is in a Correction
A correction is defined as “a sustained decline in the value of a market index or the price of an individual asset.” Meaning, the assets (in this case, homes) are losing value. If the housing market was in a correction, home prices would have to fall and they simply are not. In the past 2 years we have witnessed record breaking numbers with home price appreciation, so it’s no surprise that those intense numbers will slow, not decline.
3. The Housing Market Is Going to Crash
How many times have you heard someone say that he/she is going to wait until the housing market crashes to buy a home? Probably too many times. Well, don’t bank on it. The current housing market is nothing like 2008. It was much easier to get a mortgage in 2008 and lending standards are very different today due to protocol put into place to help prevent the crisis of 2008 from every happening again. Current buyers are much more qualified now than they were in the years leading up to 2008.
How can you make sure that you continue to truly understand what is actually happening in today’s housing market? Your best bet is to connect with a trusted and experienced real estate professional. Castro Real Estate Team attends multiple trainings every year to make sure we are up to date on the latest market updates. We can help you debunk headlines and dig deep to make sure you are getting the correct information. Who better to trust than a full team that stretches from Swansboro to Southport and dedicates so much of their time to studying this specific market? Let’s connect!