Looking out the window, it’s good to see the snow is gone, yet it can be gloomy, dark, and rainy at times. We wonder when summer will appear. History suggests we’ll see warmer temperatures and green grass soon.
This is a cycle of life. Real Estate is not much different.
Looking back to 2016, the economy was heating up and home values were on the rise, driven mostly by higher wages and low interest rates. In 2021 the Covid crisis dampened supply, but demand continued. Home values increased substantially…until last spring.
Interest rates started going up, and by fall, mortgage rates hit 7% for a 30-year loan. Overall sales dropped more than 20% from the previous year. Buyers became more deliberate.
It was a gloomy time, much like our winter.
Today, the sun is getting brighter. Mortgage rates are down in the 5% – 6% range and optimism has returned. Home prices are nearly the same as last year for some ranges, higher in others, but none are lower.
Historic data shows home values are parallel with inflation, and it doesn’t look like these, or other costs, are going down soon.
There is talk of a recession, or stagflation, which is going to happen someday. It’s part of a cycle, and not much different than knowing winter will return. We don’t stop living when it’s cold and we shouldn’t stop living the dream because we can’t see the future.
Life is more enjoyable when we match our house to our lifestyle. It’s that simple. So, why put life on hold, hoping things will get better? Things can always be better, but they can always get worse.
You need more sunshine in your life. We invite you to call or text anytime, 605.359.4100.
Tony Ratchford, licensed Broker, Author, Coach, Manager, and Sales Consultant