We All Want to Know, When Is a Housing Crash Coming?
Filed under: Real Estate Market
Is the housing crash coming? And if so, when is it going to occur? I hear this question all the time! This is a topic that is being discussed throughout the country as families are facing high costs and rising interest rates for home purchases.
Real Estate Market Changes Aren’t Predictable
The difficult thing about this question is that there isn’t a set timeline when housing crashes occur. The marketplace doesn’t care that 10 – 15 years have gone by since we’ve had a crash. It really comes down to fundamentals.
The problem we are having right now (and I‘ve talked about this many times before) is inventory. We just don’t have enough homes to sell to meet the buy demand that is coming at us at the time.
Signs of the Market Slowing
What should we look for that could be an indication the market is slowing down?
If we see inventory start to build significantly, then it would be a good sign for a market slowdown. But at the moment, available homes are at about a quarter of the usual inventory, which is extremely low.
Additionally, if interest rates keep rising at a rapid pace (1 – 2% higher than where we are right now), then it could create conditions that cool the housing market a bit.
It Probably Won’t Slow Down in the Near Future
In the meantime, I don’t see any obvious reasons why the market will be slowing down in the near future. We are still seeing a high demand for the properties that come up for sale in the local market.
The key to managing your success in a tight market is to work with an experienced real estate agent for assistance. You can connect with me any time if you are in the market to buy a home or sell your current home. I have proven strategies that are working in this demanding market.
My team offers full-service real estate services in Temecula. You can call me at (951) 473-0390 or email me at [email protected].