People are in an uproar that we are headed into a market that is just like 2008 all over again.
Hi, I'm Danielle Scott with Keller Williams Realty. Well, let's look at what the experts say.
The Home Price Expectation Survey is made up of 105 real estate experts, economists, and market analysts. 104 of them, as well as the chief economist at the Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors all say that we are going to see an increase in home prices through 2019.
Take a look at this graph showing their projections. Notice, all of them are in green. Green is good. They see a positive increase in housing prices. Do you remember when the market crashed in 2008? There was only one person who called out the crash and predicted it was going to happen beforehand. It was Robert Shiller. He is a Nobel Prize winner, and co-founder of the Case-Shiller Index. He states: You can call it a bubble, but it's not the same. It's more placid. I don't expect a sharp turn in the housing market at this point.
So what does this mean and how does it affect you? For buyers who are waiting around for the market to crash, re-evaluate what the true experts are saying. They are expecting an average increase of 5.4% through 2020 and a 2.9% increase through 2022.
Here is something to be concerned about for both buyers and sellers. Freddie Mac is predicting that interest rates will increase up to 5.3% by the end of the fourth quarter. You've got to act. Sellers, as interest rates increase, the number of buyers who can qualify for your home decreases. Buyers, as interest rates increase, your buying power goes down and you can afford less.
This means it's time to act now. So quit listening to what they say and listen to what experts say. And as always, feel free to reach out to me for any information both real estate and community related. I am here to help.