"The best time to buy real estate was a long, long time ago. The second best time to buy real estate is today."
The Housing Market...
Up? Down? All Around?
Are your clients asking?
Here are some quotes from Portal real estate economists, published in MarketWatch this morning. It follows what I have been reporting and prognosticating on for the last month:
This is important current events for everyone who sells or invests in real estate.
If you are a real estate professional, this is something you need to follow, as it is important to your clients.
Build trust and confidence with your clients by demonstrating expertise. You are the real estate professional...because if you don't know what is happening in the residential real estate market, your clients will go somewhere else, and you might have to pay to get that lead back.
Zillow, a licensed brokerage, has no trouble conveying its ideas on the future of the real estate market to the world. Neither does REALTOR dot com and other "Consumer Sources of Truth."
What will home prices do in the short-term?
Don’t expect home price growth to slow much near term, pros say. Indeed, May is often one of the busiest times of year for homebuyers, and “as a result, this May could bring with it even more limited housing inventory and in turn, even higher home prices,” says LendingTree’s senior economic analyst Jacob Channel.
What will home prices do in the longer-term?
Thanks to rising mortgage rates, among other factors, home price growth predictions for some big players in the real estate world have been revised downwards. Zillow expects annual home value growth to hit 14.9% over the next year, down from their original 16.5% prediction made in February. Meanwhile, the Fannie Mae Economic and Strategic Research Group predicts a deceleration through 2023 to just 3.2% growth by Q4.
REALTOR dot com senior economist George Ratiu:
“We’re seeing real estate markets transition toward a new normal.” Because the Federal Reserve is committed to tightening its monetary policy with several rate hikes this year, along with the potential move to curtail its balance sheets, the process is already driving the costs of borrowing higher. “As the central bank also steps back from its massive role in the mortgage-backed securities market, we can expect home loan rates to continue rising, cooling demand.”
Nicole Bachaud, a Zillow economist:
“At some point, the cost of buying a home will deter enough buyers to let inventory begin to catch up with demand and bring home price growth back down to Earth, but there is plenty of fuel left in the tank as home shopping season kicks into gear,” says Zillow’s Bachaud"