Uncertain and surprising markets.

The Uncertainty in Today’s Real Estate Market: A Call to Action

Lawsuits, interest rates, fires, insurance cancellations, and administrative changes—these are just a few of the factors influencing the current real estate market. As the saying goes, “A confused mind always says no!”—and this is evident daily in home sales. Many buyers and sellers are on the sidelines, waiting for a sign that it’s time to act. Buyers are hoping for a crash in interest rates or home prices, while homeowners with substantial equity are hesitant to make a move. Questions abound: Will home prices continue to rise? Will tax laws change, allowing long-term homeowners to sell and repurchase without losing their low tax base? How will insurance issues affect both buyers and sellers?

The truth is, no one can predict the future with certainty. But history tells us this: home prices tend to rise over time. While there might be short-term adjustments, or periods of slower growth, home prices have historically increased 2-4% per year. And, though we may see another price surge like we did in 2020-2021, no one knows for sure.

What I do know, as a homeowner, is that homeownership is one of the most secure, inflation-proof investments. Once you own a home, price fluctuations don’t matter as much—unless you plan to sell. Your payments will remain stable, and eventually, once the mortgage is paid off, your payment will go to zero.

If you’re waiting for interest rates to drop, consider speaking to a lender now. I’ll explain why shortly.

If you’re waiting for home prices to drop, again, I recommend speaking to a lender. Here’s why.

If you’re hoping prices will rise before you sell, it’s time to talk with a Realtor. Let me explain.

If you’re waiting to downsize due to tax issues, it’s crucial to consult with both a Realtor and a lender. Here’s why…

The Impact of Market Movements

• If interest rates drop, expect a surge in buyers. Homes will sell quickly, and prices may rise again. If you find your dream home, but are still in the process of securing financing, you may lose out.
• If prices drop, buyers with financing in place will be at an advantage, as they’ll be able to act swiftly.
• If prices rise sharply, it might be short-lived. Speaking with a Realtor before listing your home can ensure you’re positioned to get the most value. The right updates and inspections can make all the difference.

Downsizing

If you’re planning to downsize, there are two sides to consider: preparing your current home for sale and finding your next property. Working with both a Realtor and a lender is key. A lender will help you act quickly on your next purchase, and a Realtor will guide you in positioning your home to get top dollar.

In this uncertain market, now is the time to consult with professionals who can help you make informed decisions.