For the past 2 years, the operative word in real estate has been “PIVOT.” The word was used incessantly as the industry adapted to the ever-changing environment of COVID-19 through technology, revised practices and new rhythms. After all of that attention, I suspect that “PIVOT” got weary and needed to retire. Well, there’s a new kid on the block…
And it’s name is “SHIFT.”
“SHIFT” is another word for “CHANGE” and change triggers fear. I am no exception. A very wise mentor once told me that when I am afraid of something the best thing to do is to imagine the worst case scenario. It seems that the deepest common fear is the possibility of a housing bubble, prices crashing and a repeat of the Great Recession.
When I take a deep dive into the literature about the probability of such a repeat, the industry experts continuously reinforce that rising interest rates and a softening economy due to inflation may slow down rising prices but they don’t predict a crash. Below is a snapshot of my latest reads:
Prices Are Adjusting: A new report from Redfin on Thursday found that nearly 1 in 5 (19.1 percent) of sellers dropped their listing price during a four-week period ending May 22 — the largest share since October 2019.
Prices Will Increase But More Moderately: In their most recent forecast, economists at Fannie Mae said they expect national home price appreciation will decelerate, but remain in the double digits until next year. The graph below is a good visual of this prediction.
My operative word for the past 2 1/2 years and moving forward is “RESILIANT.” The world of real estate and human beings at large have proven that despite external conditions, we have the overriding power to endure and thrive. Change challenges us to rise to the occasion and grow. Know that we will stay committed to keeping you up to date on this “shifting” real estate market and are excited to help all of our clients achieve their goals.