Many were expecting house prices to come crashing down, much like they did in 2008. While there have been many shifts in the housing market, we have yet to see a "crash." Why could that be? What's different now? This article will explore reasons that we may not see a major drop in prices as we saw in previous years --and why you don't want to wait around for that to happen!
While we have seen house prices drop (in some areas more dramatically than others), prices have been relatively flat nationally. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), commented that he doesn't expect this to change:
"[House] prices will be steady in most parts of the country with a minor change in the national median home price."
Motivated sellers (driven by various reasons that require them to unload a property quickly) are the sellers most willing to drop their asking price.
However, most sellers aren't budging too much. The main reason is that inventory is low, and that's limiting just how they are willing to drop their asking price, according to Yun:
"Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely."
Because there's a limited supply of available homes on the market, there's constant upward pressure on prices, which explains why homebuyers in certain markets have no choice but to bid up prices. The supply-and-demand equation won't allow a price crash this time around. That's not the case in all markets, which is why it's essential to work with local professionals.
So if more homes don't come to the market, this lack of supply will prevent the major price drop many have been waiting for in vain.
For the most part, sellers aren't under pressure to move since they have ample equity right now. That equity cushions homeowners, minimizing the chances of distressed home sales like foreclosures and short sales. And with so many homeowners locked into low mortgage rates, that equity cushion will be around for a while.
With limited homes available for sale today, working with a trusted mortgage professional and real estate agent who understands your local area and current market volatility is crucial.
If you're considering moving this spring, contact us to explore your options.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 328663 CA BRE 01856458
190 W 3rd street
Santa Ana, California 92701
Fax: (714) 845-0414
Alfa Investments & Loans strives to ensure that its services are accessible to people with disabilities. Alfa Investments & Loans has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Alfa Investments & Loans makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows alfainvestmentsandloans.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Alfa Investments & Loans accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Alfa Investments & Loans continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Alfa Investments & Loans website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Alfa Investments & Loans website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: email@example.com