…the 4 biggest questions on people’s minds.
What is going on? When is the market gonna crash? Should I sell? Should I buy it now?
These are the questions we are hearing all the time, so we thought we would share our thoughts on each, to help and provide as much clarity as we realistically can. I will readily admit, that we do not have any certainty in our thoughts, meaning we can’t predict the future, but we have been around for many years, with many ups and downs, and we are in the Real Estate market every day, full-time, so we see and hear and feel things that the average real estate enthusiast does not.
What is going on? Interest rates and consumer confidence, that is what is going on. It is funny to say that the real estate market is so fickle as to take big swings based on rates and people’s feelings, but that is exactly what is going on. People buy based on their monthly payments and people buy, generally, when they are comfortable with the purchase. At this moment, people aren’t too happy with their higher payments (due to the rate) and they are not overly confident in the market. Will it go up? Will it go down? Instability brings doubt and doubt leads to people hanging tight to see what happens next.
When is the market gonna crash? Honestly, it may have already. First, what is your definition of a crash? A sudden change from an appreciating market to some amount of depreciation – we can check that box. The bottom didn’t fall out of the market, and home prices haven’t “tanked” but you can buy a home for less now than you could a year ago. Do we think the bottom will fall out, probably not. Most fears that way are based on our memories of 2007-2008, which is a different situation.
Should I sell? If you’re thinking about it, you should get a professional opinion. Meaning getting someone out to talk to you about your home and your unique situation. We are still seeing homes sell within 30 days and for very “seller-happy” prices. Do they need to be priced for today’s market and not last year, yep, but there is still a lot of demand for Central Oregon, and as long as you are realistic and your agent is worth a darn – you can make great money and get great terms on the sale of your home.
Should I buy it now? Get to know all of your options and then answer this question for yourself. If you are buying with cash, yep, this is less of a seller’s market than it has been for many years. If you are like most of us and need a loan, learn your options, then decide. There are programs, there is a way to ask for money from sellers to lower your rate, and there are other ways to make your payment more digestible and give you more confidence. So talk to an agent with experience and get in touch with their preferred lender – we suggest LoanDepot – and learn what is out there. It will cost you nothing, you don’t need to sign anything, and then you can make an educated decision.
If you still have questions, give us a call anytime! 541-312-9449