What You Should Know About the Current
Real Estate Market Correction
I’m sure you’ve noticed a gradual shift in the Real Estate market over the past couple months. It seems to be slowly correcting back to “normal.” So is this just a correction or the beginning of something more significant? The good news is that most experts are only predicting a slight cooling of the market.
“People are saying we’re in a housing bubble, but I don’t think the term housing bubble is the right description. A bubble is something that’s going to pop. I look at it as a phase. The market is cyclical, and there may be some slight correction, but it won’t be nearly as bad as what we saw in 2008. What’s different today from what we saw in 2008 is that people who are qualifying for loans are actually qualified. They are creditworthy. We’re in the situation we are now because of simple supply and demand,” said Tabitha Mazzara, director of operations at mortgage lender MBanc.
In addition, experts predict an increase in supply as the mortgage forbearance program is set to expire at the end of the month, which will further soften the market.
So what does this mean for the homebuyer/seller in the greater Baton Rouge area? Demand is still up, making it a good time to sell. With low mortgage interest rates and a rising supply, it’s a great time to start looking to buy.
Here are links to some great articles about the current housing market:
New statistics indicate red-hot housing market may be cooling (wbrz.com)
11 Predictions For The Future Of The Real Estate Market (forbes.com)
Should You Prepare For a Housing Market Crash in 2021? (yahoo.com)
A shock is headed for the housing market | Fortune
Why the housing market may see an end-of-September shock | Fortune
So what does this mean for the homebuyer/seller in the greater Baton Rouge area? Demand is still up, making it a good time to sell. With low mortgage interest rates and a rising supply, it’s a great time to start looking to buy.
If you’d like to discuss in more detail, call me at 225-229-0451.