Today’s topic is one that many people are wondering about right now: Is the real estate market going to crash?
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In answering the constant stream of questions I receive about whether or not the real estate market is going to crash, I need to first say that none of us has a crystal ball. However, based on my experience and observations, no, I don’t believe that we’re headed for a crash.
In 2008 and 2009, we saw one of the worst real estate market crashes since before World War II and the Great Depression. Statistically speaking, I don’t believe we’ll see anything like that again, maybe in our lifetime.
What we are seeing, however, is a normal market correction. People are panicking because there are some similar signs to what we saw back in 2007, like rising interest rates and inventory sitting at all-time lows. Buyers are losing out on houses because there are multiple other offers on those houses. It’s just been a very overheated market.
The good news underlying these trends is that there is still a huge demand for housing. Some buyers fatigued from multiple-offer situations began renting and took some time off from the market, but that means there are plenty of buyers on the sidelines, waiting for a promising listing.
“The good news underlying these trends is that there is still a huge demand for housing.”
All in all, I see a healthy market that will be more balanced for buyers and sellers. It looks as though in 2019, buyers will be able to get into homes without having to fight off cash buyers and multiple offers. I do believe that we’ll see prices decline just a little bit going into next year; we’ll probably see something like a 5% to 6% appreciation, but this is normal.When we start seeing double-digit appreciation for a long period, that could be a bad sign, but we’re not there yet.
Again, the market is self-correcting. Colorado Springs is still a hot market; in fact, Trulia recently said ours would be one of the hottest for real estate in 2019. There’s no need to fear a market crash in the near future.
If you’re interested in either buying or selling, right now is still a great time to do both. If you have any questions or would like help with buying or selling a home, please feel free to reach out to us. We’d be glad to help you.