Waiting for the crash? Don't.

Are you waiting for the market to crash before you buy a home? 

I sit here at 6 am trying to get ready for the day and looking ahead to client appointments.  I am reading industry articles and social media posts about everyone's opinion of the market.  Here is what I do know and anybody thinking of buying or selling a home should think about it.

Let me say this, the market is not going to crash.  Quit sitting on the fence waiting for it to crash.  House prices never go down and if you wait for 2-3 yrs to buy a home, the prices are definitely going to be higher.  It is a fact that material costs, labor costs, shipping, etc., all go up and don't come back down usually.

One of the people I follow is Dave Ramsey, like him or not, he is a financial expert.  Dave did some research over 44 yrs of housing data and found that only 2 times did home prices actually fluctuate or drop below 3% of market value.  We have a housing shortage that will never go away in our lifetime it seems.  We usually have on average about 5 million transactions a year and 2023 could dip below that.  So a shortage of homes will always keep the prices steady.   People have to understand the housing market is returning to normal.  Normal means no more selling a home in less than 24 hrs but selling it over 30-60 days.  Lenders are getting creative and offering rate buy-down programs to keep payments lower.  The federal government announced that they are cutting PMI premiums for new FHA loans.  This is a huge saving and will drive buyers back to the market with more affordable house payments. It also means buyers might be able to afford more house than before as well.  Financial experts in the residential field also believe that the interest rate hikes the FED as been doing will slow down and allow the rates to soften for buyers.  I would say 2023 is going to be interesting, but good for the housing market.  

If you are interested in buying a home get a great realtor that knows the market and knows how to navigate the market.  A good realtor will be aware of current options and ways to negotiate the deal.  Of course, if you need any help in the middle Tennessee area give us a call, 615-207-5602.