Is My Equity Safe in this Real Estate Market?
Filed under: Real Estate Market
As a homeowner, you are probably wondering whether your home equity is safe in this real estate market. We are seeing more questions from our clients about the safety of their real estate investments. Really, what they are asking is: do we see a crash coming?
To the best of our knowledge, the answer to this question is: no, we do not see a crash on the horizon. The reason being that inventory is so low right now that the demand is greater than the inventory. Even though the demand is weak and rates have risen (to significantly higher levels than before), the demand is such that the market has really held on price.
Housing Prices Dipped When Interest Rates Topped Out
We did see a bit of a dip when rates topped out. We are seeing that amount come back to homeowners now. For example, we dipped about 8 – 9 %, and we’ve gained back since then in the last 6 months or so 3 – 4% of that.
So, we aren’t quite at our all-time highs. But we haven’t dove down in price. I believe that if we were going to see a crash, we would have seen it already given what rates have done. The Feds have been pretty vocal that they are not going to be raising rates significantly.
Long-term, in the next 2 – 3 years, they expect to lower rates back down to somewhere in the 5% range (according to their publicly published document stating where they would like rates to be in the future).
Do You Have Questions About the Temecula Real Estate Market?
Do you have any questions or would you like to talk about this in more detail? Then please let me know. You’re always welcome to call, text, or email me any time: (951) 473-0390 or [email protected]