What rising interest rates and low inventory mean for our market’s future.
What’s going on in our housing market? People are worried about interest rates and inventory, so let’s talk about them.
It’s no secret that inventory is down. Supply is currently down about 20% from this time last year. Many people are worried this means we might be heading for a crash, and while I can’t predict the future, I can look at the trends.
Right now, our current levels of supply and demand are not sustainable, but that isn’t a bad thing. As the market levels out, buyers and sellers will be on a more level playing field. Before anything resembling a crash happens, this market correction will need to take place.
Many people are worried about rising interest rates, but I believe we’ll be okay. When COVID hit, governments all around the world flooded their economies with cash to keep them afloat. Now that we’re starting to see the light at the end of the tunnel, things will begin to return to normal. The market won’t crash; we’ve just been living through one of the best markets in my lifetime. That couldn’t last forever.
“Things will probably begin to return to normal.”
A market correction could bring stability, and stability will be good for our economy as a whole. It’s important to remember as interest rates rise that they will still be historically low. On top of that, our inventory will probably be low for years to come. This means our market will still be relatively hot for a while, even if it won’t be as crazy as last year all the time.
If you have any questions about today’s topic or anything else, please call or email me or my team. We’d love to help!
