By Gordon Hageman
There is a huge difference between what a lot of people think is happening and what is actually happening in the residential real estate market. The drama being expressed based on thoughts and opinions, and data showing facts of what is happening in real time.
A common misconception is that “Recessions” equate to a “Housing Crisis”. If fact they have no direct correlation historically. During the 5 most recent recessions, during 3 of them home values increased nationally. Remember the last recession centered around real estate and mortgage lending therefore housing prices decreased drastically. The other is 1991 showed a very minimal decrease in home values.
Another commonly used term made popular is “bubble”. The best way to see a “bubble” is to see what it looks like on graph (see below). While real estate values do fluctuate, current data does not show any sharp increase in values which may lead to a sharp decrease. Remember your home is not a ball thrown into the air….In the case of home values “What goes up, does not have to come down.” Real estate is a commodity, and the rules of supply and demand come into play in most cases.
Yes; Covid-19 did have a temporary impact on demand and home sales over the past 60 days, but homes under contract have shown a recent sharp rebound. Home sale prices have shown minimal to no decrease in spite of recent events and were flat in most cases.
Thoughts of Selling? Call me Today! Our market is currently strong……buyer demand is increasing….and we need your homes on the market to keep up with that demand!