Segment 1 – Could the Real Estate Market Dip Because of Increased Interest Rates & Inflation

719-301-3900 | Your Home Sold Guaranteed Realty Colorado

Barb, this real estate market is very robust, but there are still some people dropping out of home buying because interest rates have risen or the homes have become unaffordable Do you think the real estate market could decrease in the coming years?

I think real estate and employment are very closely connected
This market with its increase of between 15 and 19% in the past year
Inventory is down by 50% record lows up to $1 Mil don’t see a downturn in the near future

What we have now is:
? Moderate Interest Rates
? Growing Buying Population
? Very Limited Supply of Houses
? Great place to live

Industry Experts Like Ameriprise and Nar:
Higher Prices Combined with Limited Housing Availability
Plus Rising Mortgage Rates —
Have Cooled Demand Somewhat

Bottom line:
“We believe it will remain a “seller’s market” for the remainder of the year, and home prices are likely to see further appreciation. For 2022, we forecast U.S. median home prices to grow by about 8%. “

It's About the Local Economy and Jobs
Much of our local economy is based on Government, Defense, Military & Tech

What about End of the Forebearances?

The stats show there is a large # of mortgage delinquencies but they are gradually recovering
Almost in perfect unison with the loosening of lock down restrictions

a. Impact of Forbearance
i. if they took the forbearance what happens when they come out of forbearance?
1. Payments will go up because their loan balance is higher
2. Payments will go up because their escrow payments were not made either
3. Large amount of equity people have will allow them to sell if needed or do a loan modification

Difference Between this Time and Previous Real Estate Correction:

b. People were getting loans they could not afford or
c. Getting mortgages that doubled after 2 years.
d. Those mortgages were sold to Wall Street as “quality loans:

Real estate is all about supply and demand:
We are seeing rents increasing a bunch!
We are seeing very low inventory of available homes = Under 800 homes – should have double that number
High demand for nearly all homes under $1 million!
LOW INVENTORY

Home Prices Adjusted for Inflation @ all Time High

Some Bloggers Call it an
“Artificial Housing Bubble”
Lower Employment
Fewer People per House
But they leave out the argument of
An Increase in People Leaving the Workforce to Work from Home
Unemployment is Low – Why?
Work from Home that Covid gave us.

I think the market will remain strong through this year.
Next Year Depends on:
1. The Economy
2. Interest Rates
3. Changes in Demand

You are listening to the Real Estate Voice with Barb Schlinker of Your Home Sold Guaranteed Realty, if you are thinking of making a move Barb at 719 301 3900 or visit BarbHasTheBuyers.com

When we come back…. we will be discussing: How to Stage a Room in 1 Hour