Many house sellers and other investors have asked us often lately, “What do you think is going to happen in the real estate market coming up”?
Of course there are economists who try to predict, real estate specific gurus who forecast the upcoming market, and everyone else who has an opinion that is shaped on how the current economy affects them. Here are our thoughts as of early June, 2022... Positives for the Market: Demand continues to be strong for houses. Mortgage rates although rising, are still historically at a fair amount. There are plenty of house hunters that couldn’t buy a house because of rising prices and bidding wars over the past two years. Pricing a house is still very important to avoid a stagnant listing. Negatives Holding Growth Back: Mortgage rates are increasing and are expected to continue to go up. This lessens buying power for most buyers that need a mortgage to buy a home. This can contribute to less price growth, a flattening of prices, or even falling prices. Inflation in general hurts house buyers because they are spending so much more of their take-home pay on groceries and general supplies. Then, there’s gas. At the time of this article gas near our office in Oak Brook is pushing $6 per gallon. Gas is an easy one to focus on because you see its pricing change just by seeing signs on the street and during your weekly fill-ups. Articles from Redfin and Zillow suggest more supply of houses in the near future. This is from the average home-seller that’s finally ready to list but also includes foreclosures that have a backlog from the pandemic. Mortgage forgiveness is all but over and if owners haven’t kept up with their payments at this point there may not be much help left without selling. These negatives can tip the home market in favor of the buyer. The blunt truth is that no one knows what is going to happen. Few saw the hot market of late 2021 and early 2022 coming while we were in the early stages of the pandemic. Each situation is different and your chosen method of disposition will depend on your goals, condition of the house, timeline, and price targets. Contact us for a free and no-obligation discussion and offer on your house.
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AuthorEric Strung and Direct Property Buyer Team Archives
January 2024
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*Members of Direct Property Buyer have real estate licenses held by Spartan Residential.
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